As an insurance broker, you’re probably looking for ways in which to get your clients the best deal possible.
However, it seems some younger customers might be taking their pursuit of a better deal a touch too far.
A poll by RAC insurance has revealed that 47% of young drivers aged 17-24 would be willing to engage in the practice of fronting in order to reduce their car insurance premiums – albeit many of them don’t realise it’s illegal.
Fronting, of course, refers to insuring a vehicle in someone else’s name. This was a common practice in the past with parents taking the role of a main driver on a policy with the younger, less experienced motorist taking the role of a named driver. With the main driver likely to have built up several years without claims, they would reduce the overall car insurance premium even though they may not necessarily have ever planned to drive the car.
Now, the survey of 500 drivers has found that a host of young drivers were willing to employ fronting to lower their premiums – although only 65% of men and 49% of women actually knew it was illegal.
“It’s worrying to see so many people – both young drivers and by association their parents – who are prepared knowingly to try to cheat the system to get cheaper insurance,” commented Mark Godfrey, RAC Insurance director.
“It’s important for anyone who has done this to realise that it could result in invalidating the policy for everyone covered by it, not just the young driver concerned. What’s more, its illegal activities like this that increase the overall cost of insurance for all young drivers.
“The fact our research shows more young males are aware of fronting may be because they think their insurance premiums will be higher than young women’s which, of course, is no longer the case since the EU ruling that gender cannot be used in determining premium prices.”
So if you’re an insurance broker, it’s well worth reminding your clients that if fronting is identified their policies will become invalid and they can potentially face a court case that might not only lead to a heavy fine, but could, in extreme cases, even see them jailed.
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Controversy as premiums surge and gender gap widens
Uninsured drivers to get compensation under new EU rule
