An article released by Susan Edmund's identify the potential risks in fronting the insurance for you children.
"The practice of "fronting" describes parents who take out insurance for themselves and a teenage driver, pretending they will be the main driver of the vehicle, when in fact their child will be behind the wheel most of the time."
"In some cases, the car might be shared between the parent and the child, but the parent claimed to do more driving than they really did. In others, the child drove the car almost all the time, David Crawford stated.
"A driver under 25 can be charged more than $1000 a year in premiums for insurance on a car that would cost an older driver about $400."
"But while fronting provides a premium saving, drivers can be left out of pocket if a claim happens and the insurer discovers it was given inaccurate information."
"Karen Stevens explains if an insurer found out it had been given inaccurate information it could cancel all the parents' policies, including house and contents cover and insurance for other vehicles.
Consequently making it much harder to get insurance elsewhere because applicants must disclose whether they have ever had a policy cancelled.
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