What are the consequences of fronting?

We’ve explained in the past what fronting is, and how easily you can fall foul of the law if you add your son or daughter as a named driver to your policy if they are more than an occasional driver of the insured vehicle.

Almost half of all drivers think there’s nothing wrong with doing this, according to a study from AA Insurance. With insurance premiums for younger drivers so high, the temptation is understandable. But are the consequences worth the risk?

What are some of the potential consequences of fronting?

  • policy cancelled / declared invalid
  • the insurer could refuse to settle a claim
  • you may have to repay any claim costs already incurred by the insurer
  • prosecution for fraud and driving without insurance
  • a criminal record, fine and points on your licence
  • possible driving ban
  • more expensive to buy insurance in future
  • harder to access other financial products

Firstly, your insurer will probably cancel the policy, backdated to the date of inception. In effect, this means your vehicle was never insured (an offence in itself).

If the vehicle has been involved in any incident during this time, you might be asked to repay any costs for which your insurer is out of pocket. This could include repair costs to your own car as well as any third party costs, such as repairs, a hire car, injury compensation etc. The final bill could be substantial.

You could also be prosecuted for fraud and for driving without the proper insurance, potentially resulting in a criminal record, points on your licence, a fine or even a driving ban.

In the longer term, if you’ve got a conviction or had a policy cancelled, you could struggle to find affordable car insurance in future. But insurance isn’t the only financial product that could be affected – a criminal record could limit your access to credit cards, loans and mortgages.

Fronting arises from a genuine wish to help young drivers get on the road more affordably, but the consequences to both parents and children really aren’t worth the risk.

4 Young Drivers specialises in helping find competitively priced insurance for young drivers, so they can get their own insurance, legally and affordably.

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Released On 14th Feb 2017

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