Cheapest Car Insurance Through Fronting - A Risk You Cannot Afford

By: Tom Jones .... Click on the author's name to view their profile and articles!!!

Fronting is one of the biggest crimes being committed against insurance companies today. It is costing a lot of insurance companies big money, but it is also costing parents of young drivers quite dearly. What is it fronting and how could it possibly affect your premiums?

Fronting is the practice of having an adult (typically the parent) lie on behalf of a younger driver to achieve the cheapest car insurance rates possible. It is common knowledge that young drivers always pay higher premiums on their policies than adults because they are more likely to have accidents, damage their vehicles and file claims against their policies.

To young drivers it seems unfair. They think they are being discriminated against and most will claim that they are being penalised for the crimes of others since they are not dangerous drivers, do not speed and have never been caught racing their car even if they do own a sports vehicle.

The problem is younger drivers do in fact file more claims than adults and routinely get into accidents either out of negligence behind the wheel or a natural lack of knowledge and experience in different driving conditions. Insurance companies therefore assess all younger drivers as a higher risk than adults and they receive higher rates.

Fronting occurs by parents who want to get the cheapest car insurance rates possible for their young drivers. In most cases the parents are paying for the insurance and cannot afford the rate their kids would get on their own, or they just know that their kids cannot afford the rates on their own.

So, they put their name on the policy claiming to be the primary driver for the vehicle. This seems harmless on the surface because it is a way around the higher rates that would be received if they openly admitted their kid was the primary driver. The problem is it is against the law. It is fraudulent. It costs insurers money when the kids later have accidents and file claims on the vehicle.

Fronting does help many families get the cheapest car insurance rates possible, but it can also cost parents dearly when they are caught in the act. Insurers have simple ways of determining when a vehicle is actually being used primarily by a young driver and not by the parent and when that occurs the fees can be much higher than the savings originally gained.

Parents also risk losing their own protection if they were on the same policy with their kids and the policy is cancelled due to the fraud. Between that and possibly having to pay out thousands of pounds for their illegal activities, the price of fronting is much higher than its rewards.

It is now estimated that nearly half of all parents with young drivers on their policies are committing the crime of fronting. Many do not realise that by doing this to get the cheapest car insurance rates possible they are risking much more than their own integrity and credibility.