Parents insure kids' cars into their 30s

Thirty-one is now the average age of children insured as a second driver on their parents' insurance up from 25 just a year ago according to research from comparison website uSwitch.com.

It has also been revealed that fraudulent use of this type of insurance dubbed 'fronting' has increased by 30% in the past two years, according to the Association of British Insurers (ABI).

What is 'fronting'?
It is legal to be named as a second driver on a parent's insurance policy, provided that the child is not the main driver.

'Fronting' happens when a person has bought and registered a car, and told the insurer falsely that someone else (usually a parent) is the main driver. The practice is illegal and could lead to severe penalties.

Mark Monteiro, insurance expert at uSwitch.com, said: 'Fronting is a serious fraud. If detected, insurers can refuse to pay claims, or can settle a third-party claim and recover the cost from the policyholder.

'If the insurer declines a claim, the person accused of 'fronting' could be treated as uninsured and could be fined heavily and receive six penalty points resulting in an automatic ban for new drivers as well as higher insurance costs in the future.'

Cutting insurance costs
As many as one in five 17-20 year olds are driving without any insurance at all, according to the Motor Insurers' Bureau (MIB).

One in five of all motorists have opted for cheaper 'third party' cover because they can't afford fully comprehensive insurance, according to uSwitch.com.

All types of insurance fraud increasing
The ABI estimates that the cost of all undetected fraudulent insurance claims is now 1.9 billion a year, up 24% from two years ago. Consumers pay the price, with fraud now adding an average of 44 to every household's insurance costs.