practice known as "fronting" is illegal.

http://www.telegraph.co.uk/finance/personalfinance/insurance/motorinsurance/8526472/Car-insurance-premiums-for-young-drivers-soar-to-3688.html
With more than 448,000 of these young drivers passing their UK driving test each year, many cannot afford such steep premiums. As a result, figures from the Motor Insurers' Bureau (MIB) show that 20pc of motorists aged 17 to 22 are estimated to be driving without any insurance.
In a bid to cut costs, more parents are starting to insure a youngster's car in their own name as the main driver and then add their children as a second named driver – this is a practice known as "fronting" and it is illegal.
Research from the Co-operative Insurance revealed that 41pc of parents illegally front their children's car insurance, with most believing this is harmless and does not hurt anyone.
However, in the event of an accident, insurance companies can refuse to pay out all or part of the claim, cancel the policy, and even prosecute for fraud to recover third party claim costs from the policyholder or driver.
Insurers can identify a fronted policy easier than you might think, as something as simple as whose credit card is used regularly to buy petrol or the address of the policyholder, can establish the true driver/owner.
A new way to cut premiums?
There is hope for young drivers and it comes in the form of a little black box – new telematics insurance policies may be the answer with our research showing this type of policy could reduce bills by almost half.
A telematics insurance policy measures drivers' mileage, when they drive, and how they drive and they are penalised for sudden braking, excessive g-forces, or cornering.
Peter Harrison, a car insurance expert at Moneysupermarket.com, said: "With big increases to premiums being seen in the market place, telematic car insurance is growing in popularity as motorists seek to cut the cost of car cover.
"Young drivers, and specifically young male drivers, traditionally bear the brunt of a 'boy racer' reputation which is reflected in their premium prices, they are viewed as 'high risk' by insurers and therefore face huge car insurance costs."
Insure the Box, for instance, charges policyholders by the mile. Motorists initially pay for 6,000 miles, have the option to top up and receive free reward miles if they drive safely.
This is not the first time that this type of insurance has been on the market as, unlike the new pay-how-you-drive schemes, pay-as-you-drive has been around for some time. Five years ago, Aviva, formerly know as Norwich Union, started a pay-as-you-go policy which looked at how often and at what times of day a car was driven. But it didn't catch on and was withdrawn from the market just two years later.
But the market has changed in the past few years and car insurance premiums have skyrocketed, meaning more drivers are looking for cheaper options.
For instance, take a 17-year-old male driver of a Renault Clio – according to figures from Moneysupermarket.com, the cheapest standard annual policy comes in at £6,014, but if the driver opted for a telematic policy with Insure the Box or The Co-operative Insurance, the premium would reduce to £3,201 and £3,475 respectively.
Or an 18-year-old driver in the same car would face a standard premium of £4,529 while Insure the Box and the Co-operative are much more competitive coming in with quotes of £2,668 and £2,367 respectively.
However, Mr Harrison pointed out that while young drivers could make significant savings using this type of cover, it is important to pay attention to the terms and conditions of the policy, as with any insurance, to ensure that drivers stay within the guidelines.
For instance, the policy from the Co-operative monitors time-of-day driving behaviour due to the added risk. And as figures from Brake show that young male drivers are 17 times more likely to get into an accident between the hours of 2am and 5am, drivers with this type of policy who drive at night will produce a negative driving score on the system, which could increase premiums by 15pc.
Young men who are struggling to cope with rising premiums may also consider adding a named driver to a policy. However, this should only be done if the person is genuinely sharing the use of the vehicle or it is a fraudulent misrepresentation and against the law.
Andy Goldby, director of motor underwriting and pricing at insurer Direct Line, said: "If the person isn't ever going to drive the car and it is just being done to lower the cost of their insurance, then it is fraud.
"If an insurer gives a discount for policies covering couples, it may be possible to receive this discount if their girlfriend uses the vehicle."
While it may seem like little comfort, provided young drivers do not make any claims or get any speeding tickets, at the end of the first year premiums should drop by about a third as a no claims bonus starts to build up.
Some insurers such as Aviva offer a "rapid bonus scheme" which allows you to accrue your no claims bonus in a shorter period, typically nine months, so your premiums start to come down earlier.