Drivers need to be aware of the serious consequences they could face if they engage in car insurance fronting, a common but illegal practice. Car insurance can be costly, especially for new drivers aged 17 to 24 who are considered high-risk. In an attempt to save money, some parents may insure a car in their name while their child is the main driver. However, this is known as car insurance fronting and is illegal. Compare the Market warns that some people lie to their insurance providers to reduce costs, particularly young drivers trying to save on their insurance premiums.
Ignorance is not an excuse when it comes to fronting, as it is considered fraud and can result in an unlimited fine and points on your licence. Moreover, insurance providers pass on their losses from fraudulent claims by increasing premiums for honest motorists. It is essential that the main driver on a car insurance policy is the individual who drives the car the most, while named drivers are those who use the car less frequently. If the driving is shared equally, it is advisable to consult with the insurance provider to ensure proper coverage within the law.
According to AA Insurance, insurance fraud is a significant issue for both drivers and insurers, with over 113,000 dishonest insurance claims stopped in 2017, saving £1.3 billion. Furthermore, 449,000 fraudulent insurance applications were also identified. Committing insurance fronting can lead to severe consequences, such as prosecution for fraud, higher premiums in the future, potential refusal by insurance providers to insure you, and reimbursement of any costs incurred by the insurance provider.
In the UK, car insurance fronting is a driving offence that can result in various penalties, including a criminal record that may impact other areas of your life, a potential driving licence ban, imprisonment if taken to court, six points on your licence, and a fine. It is important for drivers to understand the risks and consequences associated with car insurance fronting to avoid legal troubles and financial loss. Remember, honesty is the best policy when it comes to insurance to protect yourself and others on the road.
