The credit crunch has led to a rise in the cases of ‘credit fronts’, in which, parents try to reduce the insurance premiums that their children have to pay, according to the car insurance provider, esure car insurance.

Fronting takes place, when a car that is driven solely or mainly by the young driver, but is registered under their parents name, so that they can qualify for cheaper car insurance premiums. Moreover home addresses can be used, even if the younger driver leaves they car in a different location, such as at their university.

Mike Pickard, Head of Risk and Underwriting at esure car insurance, said: "Fronting is fraud despite many people thinking it is a legitimate way of massaging premiums down with a few white lies. The simple rule is that if you're deliberately trying to give your insurer the impression of a very safe set of circumstances when you know that the truth is different, you are probably fronting.

"Cases where parents are effectively trying to transfer their own no claim discount to an inexperienced drive on a car they simply don't drive are fronting - plain and simple. With household purse strings tightening, parents may be tempted to do this to slash the cost of their son or daughter's car insurance but, if detected, insurers could treat the policy as invalid. Honesty is the best policy when it comes to car insurance."