Fronting rife among young drivers
One in ten families are guilty of fronting on their car insurance, according to research by moneysupermarket.com.
Fronting – in which parents insure their child’s car in their own name to save money – is illegal and can result in claims being rejected by insurers.
Nonetheless, one in three (30%) parents polled said they would consider fronting if it saved them money.
Only half (54%) were aware that fronting is illegal. A quarter (26%) believed that fronting is legal.
Just two in five (38%) said they would not run the risk of fronting on their car insurance.
“It is staggering to see just how many people are happy to take the risk and “front” on their car insurance,” said Steve Sweeney, moneysupermarket.com’s head of car insurance.
“It is illegal and will immediately be classified as fraud by an insurer.
“It may save you money in the short term on your premiums, but if caught your insurance will be invalidated and a younger driver could face court – charged with driving without insurance.”
Category: Car Insurance News, Insurance News
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I’ve read a lot of online reviews of car insurance firms and found that very few receive more than 2/5 and most only get 1/5 due to the manner in which they treat their customers. Their conscious efforts to mislead become apparent when a claim needs to be made. It’s about time the law started protecting the motorist more instead of giving the insurance industry all manner of legal loopholes to avoid honouring their obligations. The motorist is legally obliged to hold insurance, insurance companies should be legally bound to honour their agreements or suffer foreclosure for even minor infractions – As it is, they are too loosely controlled by legislation. The general level of incompetence among those employed by motor insurers is also widely quoted on review sites, as is the over use of small print and hidden charges. “Fronting” may well be fraud but is it as big a problem as the legally sanctioned but immoral fraud that so many motor insurance companies appear to commit on a daily basis? Since insurance for young drivers is so high these days and since the government’s woefully mis-sold scrappage scheme has denied a lot of young motorists the opportunity of buying affordable cars, is it really any wonder that people are taking somewhat desperate and illegal measures to gain the transport they may need for work or study? Where does the problem start, with the motorists or with the government and insurance firms?