Drivers are being warned they could face serious penalties if they follow a common but illegal method to sort their car insurance. We all know car insurance can be expensive, especially for new drivers between the age of 17 to 24.
This is because drivers in this age bracket are at a much higher risk of having an accident than drivers who have been behind the wheel for longer. Because of this and in a bid to save money, a parent may want to help by insuring a car in their name, even if they’re not the main driver.
However this is called car insurance fronting. Not only is it “common” – it’s also illegal and could lead to an unlimited fine and points on your licence.
Compare the Market says: “Some people deliberately lie to their insurance provider to save money. Driving can be pretty expensive when you first start out. That’s why fronting is most common among young drivers trying to keep the costs of their car insurance down.”
Motorists have been warned by Compare the Market that “ignorance is no excuse” – cautioning that it’s classed as fraud and you could end up with a criminal record. And as it turns out, it’s not a victimless crime according to the money gurus as insurance providers pass their losses by increasing insurance premiums.
That means honest motorists pay more, the experts reveal. The main driver on a car insurance policy should be the person who drives the car the most.
Often this will be the owner or registered keeper of the vehicle whilst the named driver will be people who use the car less than the nominated main driver. Compare The Market advises that “if you share the driving equally with the main policyholder, you should talk to your insurance provider.
“They’ll be able to advise you on what you can do to ensure you’re properly covered and within the law”. In fact, according to AA Insurance, “insurance fraud is a big problem for drivers and insurers.
“The Association of British Insurers (ABI) estimated that over 113,000 dishonest insurance claims were halted during 2017, saving a whopping £1.3 billion. In addition, some 449,000 dishonest insurance applications were also uncovered.”
What happens if I commit insurance fronting?
The car experts say that any of the following could happen:
- Prosecution for car insurance fraud
- More expensive premiums in the future
- Potential refusal by insurance providers to insure you
- Repayment of any costs incurred by your insurance provider
Are there insurance fraud punishments in the UK?
Car insurance fronting is a driving offence and a crime that could result in any of the following penalties:
- A criminal record that could affect other parts of your life, including your job
- A possible driving licence ban
- If you’re taken to court, you could face time in prison
-
Six points on your licence
- A fine