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What is Car Insurance Fronting?

Fronting is a form of car insurance fraud. It involves a driver making a false claim on an auto insurance policy, listing themselves as the main or principle driver, when in fact they should actually be on the policy as an occasional or secondary driver.

Why do people commit fronting fraud?

This type of auto insurance fraud is committed in order to save money on premiums. It is often seen in the scenario of a parent or other older, experienced driver, naming themselves as the principle driver, even though the young person is actually driving the car the most and should be the one on the policy. This is done to avoid the higher costs of having a young driver as the primary driver. As we have discussed here many times on the blog (check out this post for example), a teen or young driver is automatically considered high risk because they do not have driving experience under their belts. High risk equals higher premiums.

While it’s no fun to dampen the excitement of a teen getting their first car with expensive car insurance premiums, it is an unavoidable part of building up experience to quality for cheaper rates down the road.

Repercussions of fronting

If you’re thinking that car insurance fronting is not a big deal, think again. Fraud in the auto insurance industry is taken very seriously and any sort of misrepresentation on the information that you provide to your insurance company carries with it very serious ramifications, such as not being eligible for any coverage or compensation in the event of an accident. Criminal charges are also a possibility! Putting yourself or your family at risk of having a claim denied, or worse, is not worth any potential cost savings.

We’ve talked a lot about car insurance fraud here on the Insurance Buddy blog. Check out these posts from the archives:

Have questions about fraud and car insurance? Want to learn more about getting the best coverage for you in Ontario? Reach out to one of the insurance specialists and our team. Or click here to get an car insurance quote online.

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