What are the potential penalties for car insurance fronting?
A case study from the Association of British Insurers shows where fronting can lead. It describes how a woman claimed on her insurance for a car accident in which her son, a student, was driving. It soon emerged that she wasn’t the main driver of the car, despite saying so when she applied for the insurance. The accident had happened where her son was at university, hundreds of miles from her home, and she described him as “parking in the same spot every day”.
The claim was rejected and the policy voided. An appeal to the Financial Ombudsman was dismissed.
Fronting can have other potential consequences too:
- repayment of any costs incurred by your insurance provider
- more expensive premiums in the future
- refusal by insurance providers to insure you
- six points on your licence and a fine of up to £7,000
- a possible licence ban
- prosecution for car insurance fraud
- a criminal record