Bacs advises parents to spread payments rather than break the law

Following news last week that parents are facing substantial premiums to insure young drivers, Bacs Payment Schemes Limited (Bacs) is providing a timely reminder for parents to spread the cost of their children’s car insurance by using Direct Debit, rather than face the risk of prosecution by ‘fronting’ policies in a bid to save money.

A recent survey revealed that 41% of parents falsely name themselves as the main driver on their child’s car insurance in order to reduce the premium. This approach is not only illegal but could also prevent children obtaining insurance in the future, and invalidate any immediate insurance claim.

The risks of ‘fronting’ become even more apparent when studying statistics from the British Insurance Brokers' Association showing 17 to 20-year-olds are 10 times more likely than an experienced motorist to be involved in a serious accident which causes a fatality or injury.

Meanwhile, research from The Motor Insurers’ Bureau (MIB) has revealed that of the one-and-a-half million drivers still on the road without car insurance, one in five are aged between 17 and 20.

Mike Hutchinson, head of marketing at Bacs, said: “Obtaining car insurance, especially for younger drivers, can be expensive, but rather than risk prosecution by misrepresenting the main driver or driving uninsured, we would encourage parents to spread the payments into monthly instalments by Direct Debit.

“This makes the insurance more affordable, helps a family with its monthly budgeting, and is certainly a better bet than breaking the law and jeopardising a child’s chances of securing insurance in the future.”