Young Drivers Admit To Insurance Fraud Amid 'Unviable' And Rising Costs

The price comparison firm Confused.com revealed that it had seen an insurance increase of more than 1,000 pounds amongst 17 to 20-year-old drivers in the past 12 months.

The recent data showed that drivers have seen their car insurance increase by 58 per cent, on average, compared to this time last year.

The comparison firm pointed the finger at the financial effects of the COVID-19 pandemic causing the higher costs.

The Chief Executive of Confused.com, Steve Dukes, told radio reporters that "the frequency in claims is up in the last couple of years since the pandemic, but also the cost of them".

Dukes went on to note that the rising costs is due to the cost of second-hand car parts being "higher than they used to be", in addition to the "cost of parts" and "the cost of labour to make repairs".

"That's all being passed onto consumers," the chief executive added.

The data also exposed that young drivers, between the ages of 17 and 20, have been hit the hardest by the high car insurance costs – with some new drivers paying premiums of almost 3,000 pounds.

It is widely known that new drivers face the brunt of high insurance bills, due to their lack of experience on the road.

As a result of the bulk in insurance costs, fronting cases have increased.

'Fronting', is a money-saving method that is used to describe fraudulent activity.

The term describes when a person who has been added to an existing insurance policy as a named driver instead of having their own policy.

According to the Insurance Fraud Bureau (IFB), the fraudulent method is not worth the risk, considering if evidence of fronting is found, a driver could receive a criminal conviction and it would invalidate a person's insurance policy.

For many cases, to make annual or monthly insurance costs more affordable, new drivers are added to their parent's insurance policy as a named driver – despite being the main driver of the car.

Georgia, an 18-year-old who has recently started doing driving lessons in Oxfordshire, told International Business Times UK: "I have actually been put off of doing driving lessons because of the cost of insurance."

When asked about whether she would consider fronting, Georgia admitted: "That was the plan all along if I am honest. At first I didn't even know fronting was illegal because that's what most of my friends are planning on doing too."

"But even then, the prices of insurance are still ridiculous. It is unviable for a full-time student to be able to afford these prices," the 18-year-old added.

With regard to the current cost of living crisis affecting families across the UK, Georgia went on to recognise: "When your parents are already struggling for money, you can't ask them for help. I work a part time job but even after paying my insurance I have to find some money to pay for petrol. I also need to think about saving for repairs because I am not going to be able to afford a new car."

It has been predicted, amongst insurance companies, that fronting is becoming increasingly common because the Association of British Insurers (ABI) dictates that a main driver is just the title given to someone who drives the car for the majority of time.

In 2023, an IFB investigation found that, although fronting is illegal, a staggering 25 per cent of drivers between 18 and 24 years old, found it acceptable to lie on their insurance application if it would save them money.

Jon Radford, the Head of Intelligence, Investigations and Data Services for IFB said: "With prices rising, we understand more young people will be tempted to front on their car insurance to save money, but fronting is never worth the risk."