Car Insurance Companies Guard Against Fronting

Even with oil prices crashing from their July high of $147 a barrel, motorists are still reeling from increased costs and the effects of the global economic downturn. With car insurance premiums rising according to the AA British Car Insurance Premium Index, drivers across the UK have been taking action to lower their risk to insurers and therefore slash their premiums. One method of cutting premiums however, is more trouble than it is worth.

The process of ‘fronting’ occurs when cash-strapped parents attempt to reduce the high costs of their driving-age children’s car insurance by acting as the main driver of a car that is based at their home, even though their child is the one that uses the vehicle most frequently. By appearing as the main driver, parents can secure cheaper premiums because they have more driving experience and perhaps have built up several years without making a claim.

However, fronting a policy while not illegal is a form of car insurance fraud. Should an insurer find out that the proposed main driver of the policy is not really the one who is driving the vehicle most regularly they will automatically invalidate a claim.

How are car insurance companies clamping down on fronting?

Online car insurance provider ensure recently issued a Press release outlining that it would be taking a closer look for the tell-tale signs of fronting, either at the point of sale or at the claim stage, in an effort to clampdown on misbehaving motorists.

It outlined a number of circumstances where fronting may be suspected. These include:

A young driver who is trying to arrange car insurance in a parent’s name with themselves as a named driver.

A son or daughter giving their own mobile phone or email address as contact details for a parent’s policy.

A car with a personalized number plate that indicates it has been chosen by a named driver rather than the main driver.

A parent paying for car insurance but using a debit or credit card in their child’s name.

A second ‘starter’ car being insured in a parent’s name with their child as a named driver even though they already have a higher value car insured.

A parent moving their no-claims discount over to a second car with a child as a named driver, allowing them to pick up the discount.

A theft claim where a vehicle is stolen from a different residential address indicating that the vehicle is being used by a child living away from home.

Though it may be tempting to wiggle your way around the rules to secure a cheaper car insurance premium for your son or daughter, chances are that you will be caught. If that’s the case then an insurer will treat your claim as invalid - proving that honesty is always the best policy.

So how can young drivers keep car insurance premiums down?

Young drivers pay excessively for car insurance due to their inferior driving record. A lack of experience equates to higher accident rates with 18-year-olds alone being involved in three times as many road accidents as drivers in their 50s. Nevertheless, there are ways to be honest and still keep your premiums down.

The first step is to think carefully about your vehicle choice. It’s all well and good to want a high performance car, but as a rule of thumb, the bigger the engine, the bigger the premium. Your first car should be as conventional as possible - opt for a small car, with a small engine and conventional parts. Don’t modify the vehicle and keep the specifications simple to make the car less attractive to thieves and less likely to be used for high-speed races.

Driving safely is another key attribute. While you may be stung with high car insurance premiums initially, several car insurance providers offer a rapid bonus scheme in the first year allowing drivers to earn a full year’s no-claims discount in approximately nine months. Proving to an insurer that you’re more conscientious behind the wheel than your peers can really pay off - so take a Pass Plus course immediately after passing your driving test to earn a further discount.

It is possible to add a parent as a named driver to your vehicle and this could earn you a small discount. There are also savings to be made if you park your car in a garage at night, fit a car alarm and immobilisers, and can pay annually rather than monthly.

Many car insurance companies will not insure new drivers, so use a comparison website to compare policies and find cheap car insurance that fulfills your needs.