Fronting is when an older person, usually a parent, takes out an insurance policy in their own name and then adds a young driver as an occasional user to the policy.
Fronting is an act of fraud. If the insurance company believes fronting has taken place the policy can be cancelled and a claim could be void.
The insurance company can recover 3rd party costs from the policyholder potentially leaving a parent thousands of pounds out of pocket.
The young driver can be treated as uninsured by Gardaí, resulting in a fine and 5 penalty points.
You only need to obtain 7 Penalty Points for an Automatic Disqualification when the person drives under a learner permit and during the first two years while the person drives under a first full driving licence (N Plate).
Plus, the young driver and parent will both face more expensive insurance in future and may hold a criminal record.
Why is fronting illegal?
Car insurance premiums are calculated based on the risk of the driver making a claim in the future. The higher the risk of a claim, the higher the premium is. Insurance companies take many different factors into account when calculating a premium. For example, if a driver has had no claims for more than 5 years, the chances of them claiming are much lower based on their driving history.
Therefore, when a driver with more experience pretends that they are the main driver to reduce the cost where the main driver is actually a high risk candidate, the policy premium is not a true reflection of the risk involved.
Fronting is easy to spot!
Insurance companies are not stupid; if you have a collision they will check to see if the older person is the main driver of any other car. If there are as many cars as drivers in household then fronting will be obvious. If the car is registered to the young driver or if the collision involves a young driver on their way to or from school or work then insurers will suspect fronting.
How can younger drivers get cheaper insurance?
If you are worried about being correctly insured, we recommend that you speak to a broker.
We also recommend that you research before you buy your first car.
It may be worth thinking about what impact your car model will have on your car insurance. We’ve compiled a list of top tips for buying your first car.