Industry specialists have warned motorists about “fronting”, a form of car insurance fraud that may appear harmless but could result in fines and criminal records.
Fronting occurs when a more experienced driver falsely claims to be the main user of a vehicle to obtain lower insurance premiums, often to benefit a younger driver. This practice, however, is illegal.
The legal consequences can be significant, potentially leading to a criminal record. The Association of British Insurers (ABI) reported that, in 2022, there were 72,600 fraudulent motor insurance claims, with a total cost of £1.1 billion.
Car insurance fraud affects all policyholders, as losses from such activity contribute to higher premiums for other drivers.
“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,” said Alicia Hempsted, motor insurance authority at MoneySuperMarket in an interview with Birmingham Live. “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, such as comparing insurance providers, which could lead to significant savings. The main driver on an insurance policy should be the individual who uses the vehicle most frequently. This is typically the owner or registered keeper, but may vary depending on usage.
Named drivers should use the vehicle less than the main driver. For example, if an individual drives the car daily for commuting or errands while their child only uses it occasionally, the primary driver should be listed accordingly, with the child as a named driver on the policy, according to the report.
In the latest Consumer Intelligence Car Insurance Price index, quoted car insurance premiums in the UK have seen their steepest decline in a decade, falling 6.0% in the past three months and 8.8% over the past year.
The data also showed that drivers under 25 have experienced an 8.1% decline in quoted premiums since October 2023, with an annual decrease of 0.1%.
This followed a report from CompareNI’s quarterly car insurance index, showing that Northern Ireland has recorded the lowest car insurance premiums for young drivers across the UK, with the trend spanning the 17-24, 25-34, and 35-44 age groups.
London remains the most expensive region at £1,144 on average, followed by the West Midlands at £921, and Yorkshire at £788.
