Car Insurance Fraud: This Lie Could Cost You Thousands

Parents will always do what they can to help their children, especially when the time comes for their teenager to get their first car. One way parents often think they are helping their teenager can see both parent and child getting into hot water with the Gardaí.

We are referring to fronting. This is when parents tell the insurance company that they are the main driver of the car, even though the main driver is in fact their son or daughter.

Car Insurance Fraud: This Lie Could Cost You Thousands

Parents are largely considered to be lower-risk drivers than their teenage first time drivers. In a bid to save money, they declare themselves as the main driver and put the younger driver on the insurance as a named driver.

This cost saving activity is highly illegal. Put simply, it’s fraud.

It might be surprising to know then that many parents do this. That is parents who own their own car, but buy their son or daughter their first car after passing their test.

For some of you, the word ‘illegal’ is enough to put you off, however this is not always the case.

Research has revealed that almost half of motorists would happily save money on car insurance by using this illegal practice.

So, why do people front? What are the advantages? Here is all you need to know:

Why lie?

For no other reason than, to save money.

Young drivers are considered to be high risk drivers resulting in high premiums due to a higher claims ratio and higher claims cost.

In a bid to make their cent stretch further, many people fraudulently set up policies in the name of an older or lower risk driver.

What happens if I get caught?

If found guilty of fronting, there could be serious consequences.

First, the insurers have the right to cancel the policy from its inception, as technically they can rule it never existed and any claims could be rejected.

Though your insurer would legally have to pay out for any third parties involved it could refuse to pay out for your costs, whether that’s damage to the car or injury costs. Legally, they have the power to pursue the family involved, which if it is a serious accident can end up being incredibly expensive for the person at fault.

That’s not to mention the fact fronting is a type of insurance fraud which is illegal and means you or the main user of the car could find yourselves in court for fraud with a criminal record.

A criminal conviction could affect applications for all types of insurance and any future credit or mortgage applications you may submit.

This will also affect other drivers, as insurers who must pay out extortionate amounts of money will raise the premiums for other drivers.

How can I get cheaper insurance?

Telematics or ‘black box’ insurance is a great idea especially for young drivers by monitoring their driving giving them the opportunity to prove themselves. rewards better driving and offers a great rate to keep costs down. offers free quick car insurance quotes

Or simply check out our quick guide on how to get cheaper car insurance.

Would you be willing to save money on your car insurance by using the illegal process?

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