What is Insurance Fronting and Why is it Illegal? We all want to save money on our insurance, particularly when it comes to car insurance, however, this should never mean that we are tempted to act outside of the law. That said, the quest for saving money can sometimes mean that people consider insurance fronting. In the case of car insurance, where fronting seems to be most prevalent, the idea is that a parent or a partner insures a car in his or her name, even though it is going to be someone else doing the bulk of the driving. Often a child or someone who has less driving experience. These people hope that by naming someone who is more experienced, that they will reduce the insurance policy costs. The secondary person is then added to the policy as a named driver, but realistically, they are going to be the one who has the car the most and therefore has the greater chance of being involved in an accident.
Why is insurance fronting illegal? For many people the idea of fronting, and being able to save themselves some money, that is enough to tempt them into it. However, it is important that you remember that fronting, even though it may seem innocent, is actually classed as fraud and in turn it can be punishable as a crime. The consequences of fronting can be serious. The first thing that will definitely happen is that your insurance policy is going to be invalid. This means, if you do end up being involved in an accident, or having to make a claim on your car, then you are going to be faced with a big bill. Not only this, but as it Is a criminal offence to commit insurance fraud, you are going to end up with a criminal conviction. This will make it harder to arrange an affordable insurance policy in the future and if you do want to apply for other financial products such as a credit card or a mortgage, then you may also be unable to do this. Don’t be tempted to see if fronting is going to save you money on your insurance. In the long-run it could actually cause you bigger issues and even leave you with a criminal record.
What can you do? If you have experienced insurance fronting, or are concerned about it, you can find out more about what to do at Cifas, the UKs not-for-profit centre for data and fraud protection advice.
https://www.cifas.org.uk/newsroom/household-motor-insurance