Car Insurance Fronting

Car insurance fronting is used by some young drivers to reduce their insurance costs. In most instances, car insurance fronting is when a parent insures a car in their own name (main driver) and adds a child as a named driver, despite the child being the main driver of the car.

Is Fronting Car Insurance Legal?

Fronting car insurance is illegal and will result in your policy being voided if your insurance company finds out. Fronting insurance can also prevent the accumulation of any no claims bonus and if your policy is cancelled it will make it difficult and expensive to get car insurance again.

Insurance prices have soared in recent years and with the average policy for 17-22 year olds costing just shy of £2,500 (in 2011) car insurance fronting may be a tempting gamble for some.

Why Does Car Insurance Fronting Save Money?

When a young drivers takes out a car insurance policy in their own name the insurance company views it that they carry 100% of the risk associated with that policy. When fronting insurance the majority of the risk will be placed on the main driver (the parent who is typically a lower risk than the young driver) rather than the named driver (the child). With the policy having a lower risk the insurance company will charge less.