Car Insurance Fronting: What You Need to Know

What Is Car Insurance Fronting?

Car insurance fronting is a type of insurance fraud. In this case, the main driver of the vehicle is not listed correctly on the insurance policy. Instead, a more experienced driver, like a parent, is named as the main driver or policyholder. The actual main driver is often a younger person, listed as a named driver. People commit this type of insurance fraud to lower insurance premiums. Younger drivers are seen as riskier by insurance companies.

Fronting happens often with young drivers who just passed their driving test and are getting insurance for their own car. Insurance companies set prices based on the main driver’s risk. If someone pretends that another person is the driver to pay lower costs, it can cause serious consequences for everyone involved.

Why Is Fronting Considered Insurance Fraud?

Insurance policies are legal agreements that rely on the details given by the policyholder. Fronting happens when someone intentionally gives wrong information about who the main driver of the vehicle is. This dishonest act is a clear case of insurance fraud.

The Association of British Insurers (ABI) has simple rules for what policyholders must do. If an insurer finds out about fronting, they can cancel the insurance policy. This means the real main driver of the vehicle will not have coverage. When the policy is cancelled, the insurer does not have to pay for any claims. This includes claims from theft, accidents, or damage to others. The policyholder and the named driver might also face legal trouble.

Compare Car Insurance

Save up to £523* on your car insurance

Compare Quotes Retrieve Quote

What Are the Consequences of Fronting?

Legal and Financial Consequences

Fronting can cause serious legal and financial problems. It is considered a type of insurance fraud and is listed in the Insurance Fraud Register (IFB). Here are some of the possible effects:

• Driving bans: A driving ban can be given to people caught fronting.
• Fines: Large fines can be given, often reaching thousands of pounds.
• Criminal conviction: Fronting is a crime, and if you are found guilty, you might get a criminal record.
• Job prospects: A criminal record can hurt job chances, especially for jobs where a clean driving record is needed.

Impact on Insurance

People who get caught fronting may have a hard time getting any type of insurance in the future. If they do get coverage, the car insurance premiums will probably increase a lot. Also, being marked as a high-risk policyholder could mean that some insurance providers won’t cover them at all.

How Do Insurers Detect Fronting?

Insurance companies have advanced ways to spot fronting. Strong proof usually comes from looking into claims. In these cases, the way a vehicle is used does not match what is stated in the insurance application. For instance:

• A young driver is added as a named driver on their mum’s policy. They use the car every day to go to work.
• Black box insurance shows that this young driver drives more miles than the main driver.
• The main driver of the car is an experienced driver who does not use the vehicle often.

The insurer might check if the policyholder’s address, job details, or other information matches how the vehicle is being used.

Young Drivers’ Awareness of Fronting

Are There Legal Ways to Lower Car Insurance Premiums for Young Drivers?

While fronting can look like a simple way to cut costs, there are real ways to lower car insurance for younger drivers. These tips can help:

• Black box insurance: This type of insurance, also called telematics insurance, tracks how you drive. It rewards safe driving with lower premiums.
• Adding a more experienced driver: If you add an experienced driver, like a parent, as a named driver, it can help lower premiums. They do not have to be the main driver.
• Choosing the right car: Picking cars with smaller engines or good immobilisers and lower risk ratings can greatly cut the cost of your car insurance.
• Paying annually: If you pay for the policy all at once instead of monthly, you can get a discount.
• Increasing the voluntary excess: Choosing a higher excess can lower premiums. Keep in mind that this means you’ll pay more out of pocket if you make a claim.

Examples of Fronting in Practice

Example 1: Parent Listing as the Main Driver

A young driver just finishing their driving test buys their first car. To save some money, they ask their parents to get the insurance policy in their name while adding them as a named driver. However, the young driver uses the car every day for their commute and social trips. This means they are the main user of the car.

Example 2: Experienced Motorist Covering for a Younger Driver

An older driver gets car insurance for their younger sibling, who is in college. The policy names the older sibling as the main driver. However, the younger person uses the car to go to college every day. This practice puts the older driver’s policy at risk.

Compare Car Insurance

Save up to £523* on your car insurance

Compare Quotes Retrieve Quote

What Can Happen During a Claim?

If an insurer finds that fronting has occurred during a claim, they may choose not to pay. For example:

• A young driver who gets into an accident could be responsible for all damages. This includes paying for the repairs to the other party’s car.
• If the vehicle is stolen, the owner might not get any money back, leaving them without compensation.

In serious situations, getting the police involved might result in additional punishments. These could include a criminal conviction or a driving ban.

Correct as of 02 January 2025

FAQs About Car Insurance Fronting