It is a well known fact that car insurance costs for young new drivers are very high. In order to resolve this issue, a number of parents are committing fraud by pretending to be the main driver of a vehicle used predominately by their son or daughter.
The practice, named ‘fronting’, involves a low-risk and older driver insuring a vehicle in their name as the main driver, naming the higher risk driver, who will be predominately driving the vehicle, as the ‘second’ driver. Using this method, young drivers can avoid extortionate insurance premiums.
However, this practice is not as simple as it seems. It can have serious financial and legal implications. If detected, insurers can refuse to pay out for any claims and in such a situation the young driver could then be treated as ‘uninsured’ and could be fined hundreds of pounds, face prosecution and an automatic driving ban. They will also face higher insurance costs in future.
This practice is fraudulent and people should be made aware of the serious risks in engaging in ‘fronting’.