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Parents unconcerned about illegal car insurance fronting

Article by Simon Christopher
Posted: 18/6/2010 - Last updated: 18/6/2010
Rating: 5.00 5.00 (1 votes)



Two separate studies show car insurance fronting is still a widespread practice, though it's disputable whether offenders know they are breaking the rules.

Fronting involves falsely claiming to be the main driver of a vehicle in order to lower premiums for the person then listed as an additional driver. It's most commonly associated with parents fronting for a child who would otherwise pay high premiums as a young and inexperienced driver.

The Motor Insurer's Bureau and Aviva found that 70% of those questioned did not understand the term. Of those who then said they had carried out fronting, just 20% said they had done so while knowing it was wrong.

Meanwhile Co-Operative insurance found 41% of parents are currently fronting for children, with 57% knowing it is illegal. Even after everyone questioned had been made aware of the law, 61% of current fronters said they would do it again.

While fronting may appear a smart way to save money, it can lead to policy cancellations, refused claims and even criminal prosecution.



PLEASE NOTE: News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature, some of the information in news stories including any references to taxation, legislation, regulation, or other issues may no longer be current.

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