What is Fronting?
Fronting occurs when the main driver is in a different industry to the additional/named drivers if the van is for work use. The named drivers are only able to use the van for work use if they are in the same industry as the main policy holder.
‘Work Use’ consists of the following categories:
- Carriage of own goods for work
- SDP + Commuting
- Haulage
IMPORTANT: Named Driver can’t use vehicle for work if in different industry to the main policy holder.
Why do People Front?
The primary reason individuals resort to fronting is to reduce insurance costs. New or young drivers often face high insurance premiums due to their perceived risk. By having a more experienced driver, like a parent, as the main policy holder and the new driver as a named driver, the premium can be significantly lower.
Why is Fronting Illegal?
- Misrepresentation: Fronting is essentially a form of fraud. It involves misrepresenting who the main driver of the vehicle is, misleading the insurance company to obtain a lower premium.
- Risk Miscalculation: Insurance premiums are calculated based on risk. By misrepresenting the primary driver, the risk is not accurately assessed, leading to potential losses for the insurance company.