No, it’s not the Men In Black who are warning you against setting up a dodgy insurance policy – it’s the Motor Insurers’ Bureau. The body that represents car insurers across the UK has noticed that despite fronting being illegal, there are still lots of families indulging in the practice.
The term ‘fronting’ is used when a policy is taken out claiming that the main driver of a car is a parent, when actually it’s their child. By taking this route, rather than the honest one of disclosing who is actually the main driver, the insurance premium can be slashed.
Insurers take fronting very seriously and will investigate the situation
Although a parent may think they’re doing the right thing by ensuring their child is driving with insurance, fronting a policy meanstheir son or daughter will be driving without correct insurance cover which could invalidate the policy – so no cover is in place.
Teenagers and parents who do this are often unaware that they’re committing a form of fraud and don’t understand the consequences and risks they’re exposing themselves to. Insurers charge a premium based on the risk presented by the policyholder; if the insurer is not told the truth about the risk then it will invalidate the insurance policy.
Insurers take fronting very seriously and will investigate the situation. If you’re involved in an accident and found to have a fronted policy, insurers will recover the costs from the policyholder and/or their child as the driver. These costs can run into hundreds of thousands of pounds...
Paul Ryman-Tubb, Head of Technical at the Motor Insurers’ Bureau said, “The point of car insurance is to provide financial protection in the event of an accident. If you mislead insurers in this way, you will not actually be buying any protection at all, in fact quite the opposite; you are exposing yourself and your family to financial risk. Fronting is a serious issue and as an organisation which pays out claims to victims of uninsured and untraced drivers, we encourage all motorists to be honest with insurers and make sure they have the correct cover. When you consider the consequences of fronting, it’s simply not worth the risk.”