Drivers warned popular car insurance ‘hack’ is fraud

The public is being warned that a widespread tactic known as ‘fronting’, which is a popular with young drivers looking to save money on their car insurance, is fraud and has serious risks – says the Insurance Fraud Bureau (IFB).

Fronting on car insurance is when a more experienced or older driver (such as a parent) is named as the main user of the vehicle when, in fact, it’s mainly being driven by someone who is often younger and more expensive to insure, and the policy should be in their name. New figures show just over a third of adults (35%) have heard of fronting on car insurance, and IFB believes thousands of drivers could unwittingly be putting themselves at risk of fraud and driving without valid insurance by participating in the con.

As a result, IFB is highlighting the issue as part of its ongoing Fraud Cons campaign, with awareness ads reaching the public across Facebook, SnapChat, TikTok and YouTube. Shelley Comb, Intelligence and Investigations Manager at the IFB, said: “Fronting on car insurance is surprisingly common and because many people don’t realise it’s illegal, countless young people and their parents are implicating themselves in insurance fraud and uninsured driving, which has devastating consequences.

“This is why as part of our Fraud Cons campaign we’re urging the public to avoid fronting. You should only be a named driver if you’re not the main user of the vehicle.

“If you’re unsure who the policyholder should be, then we recommend you speak to your insurer for advice first.” Andy Trotter, Law Enforcement Liaison Officer at MIB (Motor Insurers’ Bureau), said: “We’re concerned that increased financial pressures, especially for younger drivers, are making it more likely that people may be tempted to save money through fraudulent activity such as fronting.

“Those who don’t tell their insurer who the main driver is are risking not only having their vehicle seized for uninsured driving, but also 6 points on their licence – for new drivers who only have a 6-point limit, this means losing their driving licence, and ultimately a loss of freedom and independence.” Often seen as an innocent loophole to help reduce costs, fronting on car insurance involves someone being a named driver on someone else’s policy, when they should have their own.

Because the price of motor insurance is based on the risk of the individual, the insurer must know who the main driver is so the policy can be valid. If someone misrepresents themselves when taking out cover, this is illegal and violates the policy’s terms and conditions.

This leaves the named driver without valid insurance, and both the named and dishonest ‘main’ driver could be found at fault of insurance fraud. Evidence of fronting on car insurance can come to light when inconsistencies are found in the car insurance application or in questioning following a road collision.

IFB believes countless drivers are uninsured because they’ve fronted on cover. While many do so without realising it’s a crime, there’s also evidence to suggest others may be fronting deliberately.

New figures show over a third of 18–24-year-olds (35%) think it’s acceptable to lie on an insurance application to save money. IFB has also found evidence that some influencers on social media are encouraging people to lie on car insurance applications to save money.

Fraudulent insurance applications cost insurers and their customers over £1 billion a year, therefore tackling the issue is a key priority for IFB and the industry. With young drivers facing annual insurance fees of up to £3,000, the risk of people fronting on their car cover has never been greater. But it’s not worth the risk.

If someone is stopped by police and they have invalid insurance because they’ve fronted, they face the same consequences as any other uninsured driver. This includes having their vehicle seized, and potentially facing court, where they could get a driving ban and an unlimited fine.

A criminal conviction will also impact job prospects. Plus, they’ll be liable to cover all costs if they caused a road collision while uninsured and this could run into tens of thousands of pounds. When an insurer can prove fronting on a policy, those responsible can be added to the Insurance Fraud Register (IFR), which is shared with the insurance industry, making it very difficult for them to take out any kind of insurance in the future.

This could stop someone legally using a car, running a business or even obtaining a mortgage on a first home. Over 50 people are added to the IFR every week for misrepresenting themselves or deliberately withholding key information on a personal motor insurance application, or at the point of making a claim.

Insurance fraud can be reported to IFB's confidential CheatLine.