March 18, 2010

Up to 36,000 cash-strapped parents are fiddling their car insurance by putting their sons or daughters down as a ‘spouse’ on their motor policy.

The illegal scam, which helps families lower their car insurance premiums in the economic downturn is becoming increasingly popular, damning new insurance industry figures reveal today.

Yet most consider it just a ‘little white lie’ rather than a serious offence, and carry on with the insurance scam known to companies as ‘fronting’.

Cases of fronting have doubled in the past two years as the recession has bitten and cost-cutting drivers have sought drastic ways to reduce their premiums.

This is despite insurance fraud and uninsured drivers adding £30 to the policies of law abiding drivers.

The 36,000 parents are among more than 200,000 cash-strapped motorists committing the fraud, insurers believe.

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