Latest Car Insurance News

Insurance Fronting

Posted 4th March 2010

 According to the Motor Insurers Bureau and Arriva car insurance, there is the possibility that one in five young drivers are complicit in what’s known as insurance fronting.

The practice of fronting occurs when someone else other than the main driver of the car insurance policy is driving the vehicle most of the time. Common examples of this include parents fronting policies for their children in an attempt to lower the cost of insurance premiums which are significantly higher for young drivers.

The act of fronting is technically insurance fraud and may invalidate an insurance policy because the truth is not being disclosed to the insurer at the time the policy is taken out. In most cases, this only comes to light during an insurance claim which could mean the claim is not paid out and the fraudulent claimant is liable for third party costs which could run into hundreds of thousands of pounds if personal injuries are suffered.

Interestingly, the survey also reveals attitudes towards insurance fronting. Over two thirds of respondents were unable to correctly define fronting and 30% questioned thought the practice was a loophole in the law. One tenth saw fronting as a completely legitimate exercise in reducing car insurance premiums. Once the term fronting was explained to all those who took part in the research 94% responded by saying that it was ‘socially unacceptable’.

Get a Quote

Insurance Directories

• Insurance Groups
• Insurance Brokers
• Direct Insurers
• Young Drivers
• Students
• Women Drivers
• Older Drivers Over 50
• Classic Cars
• Sports Cars
• Kit Cars
• Custom Cars
• 4x4 Vehicles
• Northern Ireland
• Driving Abroad
• Import Insurance
• Commercial Vehicles
• Van Insurance
• Taxi Insurance
• Motorhome Insurance
• Car Manufacturers
• American Cars
• Breakdown Cover

Car Directories

• Car Repairers
• Car Leasing
• Car Security
• Car Storage

Insurance Guide

• Car Insurance Groups
• Convicted Driver Insurance
• Speeding Insurance
• No Claims Discount
• Pay As You Go
• Insurance Claims
• Terms and Conditions
• Uninsured Drivers
• Short Term Insurance
• Glossary

Insurance Resources

• Car Insurance News
• Insurance Organisations
• Car Data Check
• Contact Us