Rising car insurance costs could lead to more parents of young drivers finding themselves accused of fraud if they misrepresent who the main driver of a vehicle is in a bid to save money.
Some people deliberately lie about who the main driver of a car is in a bid to reduce the cost of insuring a young driver – a practice known as ‘fronting’ – but insurance experts warn that a lot of people could be committing car insurance fraud without realising it.
Fronting occurs when, in a bid to save money by keeping the cost of their car insurance down, young drivers are added as a named driver to their parents’ insurance policy when in reality they are the main driver or owner of the car.
The insurance industry fears more parents could be at risk as a result of increasing car insurance costs. A recent study found drivers aged between 17-20 were facing premiums of nearly £3,000.
The pressure to help their children may result in parents agreeing to add them as a named driver either deliberately or without fully realising they must be sure the main driver named on the policy is the one who drives the car the most, whereas named drivers only use the car occasionally.
The Insurance Fraud Bureau said that fronting is usually discovered when a claim is made. If evidence of fronting is found, it invalidates the insurance policy and could lead to a criminal conviction.
A spokesperson for the Association of British Insurers said: “While it may be tempting to make a few tweaks to your application to save on your car insurance, adding a more experienced driver as the main driver when you will be using the car the most is known as ‘fronting’ and can constitute fraud.
“If you lie to your insurer, you risk invalidating your insurance and a criminal prosecution, and you may also struggle to get cheaper insurance in the future.”
“We would always recommend shopping around for motor insurance and making sure you have a policy that meets your needs. There are also options that could help reduce the cost of your motor insurance, such as telematics or increasing your excess, and you can also speak to your insurer about any approved driving courses.”
Jon Radford, of the Insurance Fraud Bureau, said: “Unfortunately, fronting is a common issue, and many young drivers are completely unaware that it is fraud and they can face serious consequences.
“With prices rising, we understand more young people will be tempted to front on their car insurance to save money, but fronting is never worth the risk.
“If a driver is stopped by the police and they have invalid insurance because they were fronting, they face the same consequences as any other uninsured driver. This includes having their vehicle seized, and potentially facing court where they could receive a driving ban and an unlimited fine. A criminal conviction will impact job prospects.
A recent YouGov survey (commissioned by IFB in June 2023) found that 25 per cent of 18-24 year olds would find it acceptable to lie on an insurance application to save money.
If an insurer has clear evidence of fronting, those responsible can be added to the Insurance Fraud Register (IFR) which is shared with the industry, and this will make it very difficult for the individual to take out any type of insurance in the future.
Fraudulent insurance applications cost insurers around £1 billion each year, according to the Association of British Insurers (ABI). This adds costs to all honest consumers’ premiums which is why we’re working closely with insurers to tackle the problem.
