I Was Just (Insurance) Frontin'
Insurance fronting, we probably all know someone that's done it or are doing it, but did you know it's illegal? Many parents don't and when an accident happens, the consequences can be severe.
What is Insurance Fronting?
The premiums that new young drivers have to pay are extortionate. The average insurance premium for a new driver is in excess of £1000, and in most cases it's the parents that foot the bill. To insurers, young inexperienced drivers are often high risk and fall victim to offences such as driving without due care and attention, speeding or are involved in accidents sending premiums through the roof.
To combat that, parents or other older drivers, have been putting themselves as the main driver and their children as additional drivers to combat the cost. You may call this cost effective parenting but, where the main driver is not the parent or older driver, the law calls it insurance fronting and it is a crime.
More than 41% of parents surveyed by GoCompare
said that they would consider fronting their child's insurance to save them money. 49% also called insurance premiums for young drivers a 'rip off'
whilst 38% believed that due to their high price more are being pushed to drive without insurance altogether.
The Consequences of Fronting
New young drivers are more likely to become involved in accidents than those who are more experienced. When an accident happens on the road, insurance companies become involved to sort out the costs of repairing either one or both cars. If you have fronted your child's insurance, the insurance company may well ask why the accident happened at, for example, your child's university town instead of by your home address where the car is registered.
As well as refusing to pay for any damage to your car, an insurance company could pursue you for the costs whilst also cancelling your policy. Cancelled or rejected insurance policies can increase your premium even further in the future. But, more importantly than that, a driver could be charged with driving without insurance if the policy is cancelled. This alone carries a fixed penalty of £300 and 6 penalty points. If the case goes to court, there could be a fine of up to £5,000 imposed and a driver could be disqualified from driving
Unaware of Insurance Fronting?
Fronting is also a type of insurance fraud
and if caught, you can face a criminal record for the rest of your life.
For those parents who are unaware that insurance fronting is a crime where their child has been involved in an accident, we urge you to call us for legal advice
as soon as possible. There needs to be a crackdown on insurance fronting however, there also needs to be an effort to educate parents, young people and their families about the offence. Julie Robertson has helped clients who did not know the rules around insurance fronting and she can help you to.