We have, in an earlier blog post referred to the topic “What is car insurance fronting?” I would like to quote briefly from this section:
What is “fronting”?
Vehicle owners regard fronting as a method to get a better deal on their car insurance. Parents with children who drive are the biggest culprits for fronting, and do so in an attempt to cut the cost of young drivers’ car insurance.
This is also used by young and new drivers confronted with expensive car insurance premiums. By allowing an experienced driver to become the main driver on their insurance policy, they find that they pay significantly lower car insurance premiums.
Research on car insurance fronting in the UK
Newly released research results in the UK reveal that high numbers of “fronting” take place on roads in the UK. Parents are claiming to be the main drivers on the policy, when in fact it is one of their children who are the main driver, or owner of the car.
New figures suggest that 41% of parents deliberately lie when filling out policy applications. Research by Co-operative Insurance found that 41% of parents were actually fronting policies at the moment, and 61% would do so in the future.
What are the risks of Car Insurance Fronting?
- Car insurance fronting constitutes fraud and parents risk criminal prosecution
- Parents reduce their chances of obtaining insurance in the future
- Insurers could refuse cover, and deny insurance in the future.
- If the driver of “the insured vehicle” is at fault in causing injury to a third party, such insured fronting party will have to pick up their costs as well.
The survey revealed that hard times may be forcing parents to try and save money on insurance. But it warns that if they do so illegally, the ultimate price could be prosecution.
Conclusion
The Car Insurance Blog would like to emphasize focusing on the terms of the contract. Always remember that the car insurance policy is a contractual agreement between the vehicle owner and the car insurance company. The monthly premium required is based on a FULL DISCLOSURE of ALL MATERIAL FACTS!
Should you fail to disclose all these facts – you will be in breach of the contract and the claim under such contract would be rejected.
Also view:
What is car Insurance Fronting?