The high cost of car insurance could lead more young people to commit fraud, according to the industry. Recent data shows that the average policy quotes for 17 to 24-year-olds are nearly £3,000. The Insurance Fraud Bureau (IFB) has warned against “fronting”, a fraudulent practice where a person is added to a policy as a named driver when they should have their own policy.
Younger drivers typically face higher insurance costs due to their inexperience. Often, they are added to their parents’ policies as named drivers, even if they are the primary driver of the vehicle. A survey by the IFB revealed that a quarter of 18 to 24-year-olds would consider lying on an insurance application to save money.
Despite the high costs, some young drivers have found ways around it. For example, Lucy, a 17-year-old from Leeds, was added as a named driver on her mother’s £2,800 policy after receiving quotes as high as £9,000 for her own policy.
However, the high costs of insurance for young drivers may be impacting the number of driving tests taken by young people. The Driving Vehicle Standards Agency reported a drop in tests taken by 17 and 18-year-olds from 520,505 in 2019-20 to 504,718 in 2022-23.
The IFB warns that fraudulent insurance applications can lead to vehicles being seized, driving bans, unlimited fines, and criminal convictions. Fraudulent applications also add costs to all consumers’ premiums. The Association of British Insurers estimates that fraud costs the industry around £1bn a year.