Insurance fronting

Call me naive, but I don’t believe most people set out to break the law. So I believe new research revealing that more than 2.5 million UK drivers could be committing fraud by “fronting” is down more to ignorance than villainous intent.

Fronting is getting cheaper insurance by one person taking out the policy while the actual driver is just named on the cover. The practice is financially advantageous when the main driver is experienced, with many years of no-claims discount, while the named driver is the opposite.

It’s undoubtedly done by parents trying to help their children out with the exorbitant insurance youngsters have to pay. The report by Privilege carinsurance adds that 1.5 million drivers are named on the policies of cars they’ve never driven.

I’m sure many people view it as a victimless crime. However, insurers can refuse to pay out on claims if it’s detected, which effectively renders the youngster uninsured. And that can lead to a fine plus six penalty points and an automatic ban for new drivers.

All of a sudden, fronting doesn’t look like such a money saver.