The insurance 'trick' parents use to get kids cheaper insurance coverage is ILLEGAL and may see you fined

BRITISH parents are running the risk of a lb5,000 acceptable for illegally insuring kids.

Mums and dads are listing themselves because the "main driver" on policies to slash premiums for his or her children.

But almost half don't realize that "fronting" is classed as fraud and could land all of them with a criminal history and six points on their own licence on top of the massive fine.

Fronted policies are often less expensive as parents are thought a lesser risk than the young drivers who're just listed as named drivers.

But it's misleading as the primary driver needs to be the person who will predominantly use the car.

Listing a parent like a named driver to help reduce the premium is NOT illegal – however, you can't add individuals who won't ever drive the vehicle.

Analysis by young driver insurer Ingenie, revealed 41 percent of drivers don't know fronting is against the law or that they might be convicted for fraud.

The six penalty points will also hike future premiums along with a fraud conviction may damage your credit rating and stop you getting loans or insurance in the future.

New drivers who have been behind the wheel for less than 2 yrs could even be stripped of their licence if they're caught fronting.

If a person has an accident and it's revealed the insurance policy was fronted it'll be invalid laying the cost of the claim at the drivers' door, too.

ARE YOU IN-SURE? Uncertain about the right insurance policy for your car? See the best idea choice for you and what factors affect the cost

Mike Ketteringham, CEO at Ingenie, said: "Fronting is fraudulent activity and it's concerning that so many drivers don't appear to realise this; if you are caught, you may be hit with hefty financial and legal penalties.

"In addition, but a conviction could affect your credit rating, and would impact what you can do to get other types of insurance later on.

"This is bad news for all drivers, but especially young ones who face the highest premiums as it undermines all of the hard work and money they've committed to your driving practise.

"Getting on the street could be expensive and it can be tempting to take risks in order to spend less, but there are more – legal – ways to lower your premiums for example getting a telematics policy that rewards you financially for good driving."