Do you know what ‘fronting’ is? If you don’t, you’re not alone - according to new figures from the Motor Insurers’ Bureau (MIB) and Aviva, two–thirds of drivers don’t understand the term.
This means that millions of people are ignorant of the real risk they could be putting themselves under with what is seen by many as a ‘little white lie’.
What is ‘fronting’?
So what is fronting? Well, it occurs when anyone other than the main driver is wrongly declared to be the policyholder when securing their car insurance.
Allow us to give you an example; if a father names himself as the main driver in a policy, with the intention of cutting the cost of insurance on a car used primarily by his 17-year old son, he would be ‘fronting’ the policy. Sound familiar? If so, you could be taking a big risk indeed.
Aside from this type of fraud carrying a variety of possible legal costs, being caught could also invalidate a car insurance policy – potentially leaving you uncovered or forced to pay the correct premium up front. Even if your policy is not cancelled, you may find that it becomes much harder and far more costly to obtain insurance in the future, as insurers often maintain databases to share such information with others in the industry.
A white lie is still a lie
Despite all this, one in five of those who know what fronting is still admits to having committed this type of fraud, while more than a third of drivers attempt to justify it as taking advantage of a loophole in the law.
Ashton West, chief executive of MIB, said of the findings: "There is a significant degree of confusion amongst drivers about the importance of giving accurate information about the main driver to an insurer. There is a need to help drivers understand and appreciate the importance of being adequately insured."
How to cut costs crime-free
Of course, we understand that, as a young driver, it can be expensive getting on the road – our own research with EMB tells us as much. So to help out, here are some tips that could seriously cut the cost of your premium:
- Get discounts on your premium by taking extra safety precautions such as parking your car in a garage at night, and fitting an alarm and immobiliser.
- Choose a car with a smaller engine, as bigger and faster vehicles cost more to insure.
- Avoid vehicles with any modifications from the standard manufacture.
- Make savings by reducing your mileage or by only driving at certain hours of the day.
- Take the Pass Plus qualification (www.passplus.org.uk) to benefit from a reduction of up to a third on your premium.
- Consider lowering the price you pay by opting for a higher excess - but be sure you can still afford this amount in the event of a claim.
- Shop around to ensure you are getting the best possible deal at Confused.com.
