Motorists warned as ‘harmless’ car insurance ‘loophole’ could result in fines and criminal charges
Drivers across the UK are being warned that they could face criminal charges for using a common money-saving tactic when insuring other motorists.
Experts have issued a fresh alert about the dangers of “fronting” policies, which has become increasingly tempting as insurance costs for young drivers continue to soar.
Current data shows the average annual premium for drivers aged between 17 and 19 stands at a staggering £1,965 for women and £2,218 for men.
These astronomical costs have led many parents to search for ways to reduce premiums for their children.
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The practice of “fronting” occurs when an experienced driver claims to be the primary user of a vehicle on an insurance policy, when in reality a younger, less experienced driver is the main user.
The clever loophole to make driving more affordable and lower insurance costs for young people looking to stay on the road.
However, experts warned that many parents don’t realise that this common money-saving hack constitutes a serious form of insurance fraud.
Insurers view fronting as deliberately misleading them about the risks involved in insuring the vehicle.
By falsely declaring who the main driver is, parents are essentially lying to obtain a cheaper premium. This can invalidate the insurance policy completely, causing it to be cancelled.
This will leave the policyholder financially responsible for any damages following an accident and is classed as a criminal offence under UK law.
People caught fronting risk receiving a substantial fine and may also end up with a criminal record that could affect future employment opportunities.
Perhaps most damaging for young drivers, those involved in fronting schemes often find themselves unable to obtain any form of insurance in the future.
Insurers typically uncover fronted policies during investigations after claims are made, meaning serious consequences could be uncovered in the aftermath of an accident.
Alicia Hempsted, motor insurance expert at MoneySuperMarket, said: “With insurance costs for young drivers reaching astronomical levels, it’s understandable that parents are looking for ways they can cut costs and help their children get on the road.
“Unfortunately, what might seem like a harmless loophole to make premiums more affordable can have serious long-term consequences.”
Hempsted advised families to explore legitimate alternatives instead, such as shopping around, which could save them hundreds or even thousands of pounds a year.
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She also suggested investing in a telematics policy to bring total costs down and improve their behaviour behind the wheel.
Opting for a higher voluntary excess can also lower premiums, though drivers should ensure they can afford this amount if they file a claim.
Choosing smaller cars in lower insurance groups will generally result in cheaper premiums, although many young people may only be able to afford these cheaper vehicles.