Trying to hide who is actually the main driver of a car isn't just a little white lie – it's fraud.
According to new research from Privilege, 6% of motorists are falsely listing themselves as the main driver on a car insurance policy.
It’s known as ‘fronting’, but there could be grave consequences if your insurer finds out.
The rise of fronting
Fronting is a way to cut the car insurance costs for the real main driver. It’s typically parents that utilise it, as their child will face a far more expensive policy if they are named as the main driver. Instead, the parent claims to be the main driver, with the child simply a named driver.
If the 6% figure from the Privilege survey is replicated across the nation, that would work out at more than two million motorists!
Incredibly a further 3% (or one million drivers) have been named on policies for a vehicle they have never even driven.
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Why we are tempted
It should be no surprise that so many people are tempted by this ‘little white lie’, as the cost of car insurance for young people is extraordinary. And that’s even when you take into account the fact that it has fallen significantly over the last 12 months.
In April the AA published its latest Shoparound analysis of car insurance, where it combines the five cheapest premiums it could find from a range of sources. Here’s how car insurance premiums look for the different age bands, and how they changed on both a quarterly and annual basis.
|
Age band |
Q4 2013 |
Q1 2014 |
Quarterly change |
Q1 2013 |
Annual change |
|
17-22 |
£1,287.20 |
£1,158.07 |
-10% |
£1,456.76 |
-20.5% |
|
23-29 |
£727.00 |
£685.63 |
-5.7% |
£856.49 |
-19.9% |
|
30-39 |
£464.83 |
£446.94 |
-3.8% |
£516.82 |
-13.5% |
|
40-49 |
£436.36 |
£417.43 |
-4.3% |
£483.32 |
-13.6% |
|
50-59 |
£365.37 |
£357.35 |
-2.2% |
£395.87 |
-9.7% |
|
60-69 |
£308.45 |
£299.81 |
-2.8% |
£331.91 |
-9.7% |
|
70+ |
£370.38 |
£365.51 |
-1.3% |
£393.64 |
-7.1% |
As you can see, even though car insurance premiums for the youngest drivers have dropped by more than 20% over the last year, they are still around four times more expensive than the over 30s. Faced with a bill like that, is it any wonder that telling your insurer what appears to be a little fib becomes ever more tempting?
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The danger of fronting
[SPOTLIGHT]The problem with fronting is that it is a form of fraud. Should the insurer discover it has been misled, penalties include claims being refused and policies being cancelled with no premiums refunded. In some cases there could be fines, penalty points, even the possibility of losing your licence.
It will also prove more difficult – and therefore more expensive – to arrange cover in future.
Some people view fronting as a harmless way to save a few quid on their car insurance. In truth, it’s anything but.
Cutting your car insurance costs the right way
There are plenty of ways to cut how much you pay for your car insurance without resorting to fraud. Here are just a few:
- Never auto-renew: you should always shop around to ensure you are getting the best possible deal. Opting to auto-renew can cost you an extra £200 a year!
- Increase your excess: the excess is the amount you pay towards any repairs when you make a claim. By increasing the excess, your should pay less in premiums. Just don’t ramp it up to an unaffordable level.
- Improve your car’s security: parking off-road or in a garage, and installing an immobiliser or alarm to your car will make it more secure and therefore cut the cost of your car insurance.
- Pay it all in one go: most insurers will offer you the chance to pay off your insurance policy each month rather than in one go. But you’ll pay a massive rate of interest to do so. You’re better off getting a 0% credit card to cover the costs, and spreading the payments that way.
- Tweak your job title: bizarre as it sounds, the job title you use when applying for a policy makes a difference to the cost. For example, my quotes work out cheaper if I put my job down as editor than if I put journalist.
For more, check out 25 ways to cut your car insurance.
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How rising motor fraud is driving up your car insurance costs again
Insurance: your options if you have been convicted of a criminal offence