Car Insurance Fronting occurs when the main driver of a car declares someone else as the main driver (usually a parent) to reduce the cost of their insurance premium.
Fronting is illegal and can result in the cancellation of your car insurance policy or a fraud conviction.
Why Do Drivers Front?
Fronting is usually committed by new or young drivers because they traditionally pay higher car insurance premiums.
Young drivers are considered higher risk which results in higher car insurance premiums.
Due to this increase, some young drivers try to reduce their insurance premium by setting up an insurance policy in an older, low-risk driver’s name and adding themselves as a named driver. In some instances they may not even realise what they are doing is fraudulent.
Why is Fronting Illegal?
Car insurance premiums are calculated based on the risk of the driver making a claim in the future. The higher the risk of a claim, the higher the premium is. Insurance companies take many different factors into account when calculating a premium. For example, if a driver has had no claims for more than 5 years, KennCo reduces their premium by 64%. This is because the chances of them claiming are much lower based on their driving history.
Therefore when a driver with more experience pretends that they are the main driver to reduce the cost where the main driver is actually a high-risk candidate, the policy premium is not a true reflection of the risk involved.
What Happens If Drivers Front?
It may be tempting to risk fronting if you are receiving high insurance quotes. However, it isn’t worth it in the long run. Fronting may void your car insurance, meaning that your insurer may not pay out for any damage to your car if you make a claim. As well as being left to foot the bill in the event of a claim, you may also be charged with insurance fraud. Having a criminal conviction can also have a negative effect on the price of your car insurance in the future. So the potential savings are just not worth the risk.
Car Insurance Fronting FAQ
Why does fronting happen?
Driving can be expensive for those starting off between the ages of 17-24. Parents may want to help by putting themselves as the main driver and adding their child as a named driver. They and their children are committing fraud and are breaking the law by doing so.
How Can Younger Drivers Get Cheaper Insurance?
Before you buy your first car, it may be worth thinking about what impact your car model will have on your car insurance. We’ve compiled a list of cars that are cheaper to insure here.
KennCo also take into account any named driving experience you may have.