What is fronting, and how can it affect you

Date: 14 FEB 2017posted by Car Rentaledited by WinX

In some surveys, more than half of young drivers are willing to use fronting to save money on car insurance.

But what is fronting?

Fronting is the illegal practice of having a driver declare themselves as the main driver of a vehicle for another driver in order to achieve a lower insurance premium rate. Usually in the scenario of an older and more experience driver, such as a parent, insuring a vehicle in their name but realistically the main driver of the vehicle is their inexperienced child. And, yes, fronting is illegal, it is insurance fraud. Not only does it pose serious consequences if caught, it can land you a criminal record and everything that follows. But even knowing it is illegal, some surveys and researches found one-in-five motorists who understands fronting is fraud and still committed it. While more than a third of motorists justify it as taking advantage of the a loophole in the law, rather than breaking it.

The consequences of getting caught fronting are quite severe, which includes:

  • The insurance company reserving the right to refuse to pay for any damages to the vehicle if the main driver was not correctly stated
  • If there is any third party damages, the insurer may be obliged to pay any successful claim, but may in return pursue the policyholder to compensate and recover the losses
  • The insurer may cancel or void the policy
  • The insurance premiums will be more expensive in the future for those caught fronting due to covered being refused or cancelled, and convictions
  • Court action, and if convicted will lead to a criminal record

So why do people front?

The answer to that is money. An experienced driver's insurance will be significantly less than a teenager that just got their license. The reason why young drivers are charged more is because they are part of the age group with the highest proportion of insurance claims, accidents and fatalities. Their inexperience, lack of judgement and poor decision making poses them as the most dangerous age group to be on the road. Some people try to reduce their costs by fronting insurance using the name of a more experienced and older driver. Some people argue that the high insurance premiums causes young drivers to go without insurance on the road. Every country has their own different laws regarding driving without insurance. Some countries may see court time for uninsured drivers on the road which may lead to jail time or an unlimited fine. So driving without insurance is definitely not recommended.

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