Parents Unintentionally Committing Insurance Fraud

Thousands of British parents and even grandparents are unwittingly committing insurance fraud as their kids drive off to university in a car primarily insured for mum and dad, or grandma and granddad, with teenage children paying the penalty.

New research from Zurich Insurance reveals that one in 10 people surveyed (nine per cent) who’ve helped their child or grandchild buy a car currently has it insured in their own name – with many not realising that they could be breaking the law in doing so.

A staggering 68 percent of those who have insured the car in their own name admitted they did it primarily to help reduce premiums – as experienced drivers tend to pay lower insurance premiums than their young relatives, while a fifth (19 per cent) mistakenly believe the car should be insured in their name because they legally own it.