You’ll Regret ‘Fronting’ in the Event of an Accident Claim Involved in an

July 14th, 2010 Posted in Ski Holiday Insurance

There’s no avoiding car insurance. It’s a legal requirement but in the event of needing to make an accident claim or, more importantly, having one made against you, you’ll be grateful you have it. However, younger drivers have a tough time even finding car insurance, never mind affording it. If that sounds familiar, don’t be tempted to break the law to save a bit of cash. In the event of an accident claim you will almost certainly regret it.

Not even half of the major companies providing car insurance will cover a teen driver. Amongst those that do, it is common to see quotes as high as £4,000 which is often significantly more than the car is even worth. Male teenage drivers have the priciest premiums because female teenagers are statistically more careful and those that do make an accident claim tend to have lower value claims.

Statistics support the insurance companies’ assumptions that teenage drivers are likely to have an accident claim made against them. Drivers in this age group are ten times more likely to injure or kill someone on the roads than their more experienced counterparts. But in trying to beat the insurance companies and drive down costs, some parents act illegally.

According to the Motor Insurer’s Bureau, one in every five teenage drivers has no insurance cover at all. Many others engage in a practice known as ‘fronting.’ This is when parents claim to be the main driver of a car and name their child as another driver when in fact the child is the main driver. For some it is a harmless way of saving a bit of cash. It is illegal.

If an accident claim is made and the insurance company realises that the teenager has been the main driver all along, there are serious consequences. Both parents and teenagers can be prosecuted and may struggle to get insurance again in the future. Insurers can also refuse to pay out some or all of the accident claim settlement.

‘Fronting’ might seem harmless and surveys suggest many people are doing it. However it certainly isn’t worth risking prosecution, or the cost of a whole accident claim settlement if the insurance company refuses to, no matter how much money you could save.