Fronting’ is a common insurance fraud committed by many parents to lower the premiums they have to pay on their family’s car insurance. The problem is: most do not know what it is, and even less consider it a fraud.
‘Fronting’ is when a person names herself as the main driver of a car in lieu of the actual driver, in order to drive the insurance premiums down. Young drivers, being one of the most accident-prone demographics, command higher premiums than most, and it is a common practice for parents to ‘front’ their policies for them, a victimless crime that balances the household budget.
But what most do not realise is that not only is this practice illegal, the ultimate victims of this practice are none other than themselves. False declarations on their policy will mean that when the need to make a claim arises, they will find their car insurance to invalid, making any initial ‘savings’ illusory. With such practices as ‘fronting’, both the car insurance holder and the driver run the risk of having to fork out additional costs, penalties, fines, or even face prosecution.
According to a study conducted by Aviva and the Motor Insurers’ Bureau (MIB), 35% of the drivers see ‘fronting’ as a legal loophole, while a further 10% believe that it is a legitimate way of securing motor insurances at lower premiums. However, only 30% of those surveyed were able to define ‘fronting’ correctly, and when presented with the actual definition, 94% deemed it to be ‘socially unacceptable’.
The research shows that a 31% of the drivers assume that they will be covered by a ‘fronted’ policy, an assumption that is not just mistaken, but costly as well.
The study is a part of MIB’s ‘Stay Insured’ campaign, and aims to create awareness among vulnerable drivers who may be lacking adequate insurance during the recession.
Ashton West, Chief Executive of MIB said that a ‘fronted’ policy simply is not worth it. Car insurance policies are about peace of mind and financial protection, a ‘fronted policy’ offers neither.
For those that are not sure about their motor insurance policies, askMID.com offers a helpful information on how to stay insured legitimately.
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