Co-operative Insurance discover widespread fronting
The Co-operative Insurance has commissioned research which shows that more than two out of five parents are illegally fronting their children’s car insurance, in the knowledge that it is against the law.
Fronting is defined as a higher risk driver (in this case a young driver) being added as a named driver to the policy of a lower risk driver (the parent) rather than taking on insurance themselves and paying a higher premium.
The Co-operative Insurance has also found that more than three out of five parents who are presently fronting for their children would do so again in the future.
If fronting is discovered, it can lead to policy cancellation, denial of claims and even prosecution for fraud.
The research The Co-operative Insurance has done echoes similar findings discovered by young driver specialist insurer Young Marmalade earlier this month.
Young Marmalade’s co-founder, Nigel Lacy, warned that not only was fronting easy to discover but it could also land the offenders with a six figure bill should a third party be injured and the insurer refuse to pay out.
Category: Car Insurance News, Insurance News
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