Is Fronting Insurance Illegal?

It’s understandable that a parent or a family member might want to take out a car insurance policy in their name when they aren’t the main driver. The practice of car insurance fronting is known. It is a type of car insurance fraud that is illegal and could land you with a criminal record.

How is fronting detected?

When a claim is made, fronting is likely to be found. If the named driver is involved in a collision, an insurance provider may investigate. The insurer may refuse to pay for damage if it concludes that fronting has taken place.

What is classed as fronting?

What do you mean by fronting? Fronting is when a driver tells a car insurance company that he or she is the main driver of the vehicle if the other person is actually using it. Even though the main driver is a younger, riskier driver, an older, more experienced driver will often try to get a car insurance policy in their name.

Is insurance fronting a claim?

The fronting insurer is at risk. Insurers assume a primary legal responsibility to pay covered claims when they issue policies. The primary liability to pay the claim stays with the front as the risk is allocated through the fronting/re insurance transaction.

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Can you be main driver on 2 cars?

The insured named driver doesn’t use the car as often as the main driver. The main driver has the same level of protection as the named one. A named driver could be in charge of another vehicle. It is possible to be the main driver of more than one vehicle.

What happens if you are caught fronting?

If you are found guilty of fronting, you could end up with an unlimited fine and six penalty points on your driving licence, as well as gaining a criminal record. Fronting can lead to higher car insurance premiums in the future, and some insurance providers may refuse to cover you.

Does the car owner have to be the main driver?

The main driver is the person who earns no claims discount if they drive the vehicle a lot. They don’t have to be the principle insurer but they have to live at the same address.

Is fronting a criminal Offence?

A case involving the Passenger Rail Agency of SA and the Swifambo Rail Agency was handed down judgement by the judge.

Why do people do fronting?

If a person has a history of claims, fines or penalty points, they can be fronted in order to reduce their premiums.

Is it legal to insure a car twice?

Is it against the law to have more than one policy on a car? It is not illegal to double up on car insurance. If you make a claim from more than one insurance provider, you can’t get the full amount. It is illegal to do so and can lead to a criminal record.

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