Daily Insurance Industry News
Daily Insurance Industry News
Monday 15th of October 2018
February 24, 2010

Over two-thirds of UK drivers hazy on “fronting”

by Gill Montia

Story link: Over two-thirds of UK drivers hazy on “fronting”

Over two-thirds of UK drivers hazy on “fronting”

Large numbers of motorists could be deceiving their car insurers by naming themselves as the main driver of a vehicle when they are not.

An example of this would be a parent insuring a car and declaring themselves the main driver in order to reduce the premium, when in fact their son or daughter will be the main user of the vehicle.

The practice is known as “fronting” and according to research from Aviva and the Motor Insurers’ Bureau (MIB), 70% of UK drivers do not understand what it means to “front” a policy.

Of those who do understand, one in five surveyed admitted to misleading their insurer and committing this type of insurance fraud.

The study also reveals “a disconnect between drivers’ perceptions of fronting as a ‘white lie’ versus the reality of it as a legal offence”.

When questioned, 35% of drivers defined “fronting” as being a loophole in the law; 10% believed it was a legitimate way of obtaining cheaper motor insurance and only 30% were able to correctly define the term.

However, when presented with an accurate definition, 94% deemed fronting an insurance policy to be socially unacceptable.

The MIB warns that where it is proven that a policy has been “fronted”, insurance companies can refuse to pay out and may look to recover third-party claim costs from the policyholder or driver.

Aviva’s motoring strategist, Nigel Bartram, comments: “Well meaning parents may consider fronting an insurance policy to try and save money, but this is false economy as those that try to cheat the system by declaring false information will find that their insurance is invalid when they actually need to make a claim on their policy.”


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