Auto Insurance Fronting

Let’s face it, car insurance is expensive, and it keeps going up almost every year. It might be an expense out of reach or just too costly for individuals and families on a tight budget. Many people try and find methods to get around the high cost of coverage. One such strategy is the so-called auto insurance fronting.

This method of fronting is a not so honest way of getting cheaper automobile insurance. It has been around for about as long as cars have been on the road.

The Nuts and Bolts of the Idea are:

• A person with a clean driving record is named on the insurance policy as the primary driver.
• They are then charged reduced rates.
• Next, the actual primary driver with a bad driving record is the one that uses the vehicle the most.
• This trick can save a thousand dollars or more per year, but there’s a catch.
• If the actual motorist gets into an accident, the claim may be rejected.

That means the false primary driver might get stuck with an expensive insurance bill in the thousands or more. Get your free rate check-up from good to go insurance online.

Many people are not aware of the risk they are taking when fronting on car insurance. They don’t realize the trouble they could get into if there ever were an accident. In the long run, this practice will inevitably cause problems. Approximately 2,350,000 people are injured in vehicular accidents each year. If you do not have verified auto insurance, you could be in a crash that requires you to cover the medical expenses out of your pocket. Remember, auto insurance companies are strict about claim payouts. Each carrier has specialists that examine each incident and look for fraud. It is just not worth it to the car insurance front. While it might save you a few dollars in the short run, the odds are that it will cost you more money later on.

Auto Insurance Fronting by Listing Young Drivers on Your Policy

You should carefully think before adding a young driver onto your auto insurance policy. If you have a teen who is eager to drive, you need to weigh the cost of adding them on. If you can afford it, then great. If you have a teenager that just drives on weekends and not Monday through Friday, then that can qualify as a part-time driver. You should call up your insurer before adding them onto your policy and get the exact qualifications beforehand. The last thing you need is to have your teen out on the road with non-qualified coverage.

It is very tempting for parents to use fronting for their teenage children

This happens due to cost. A typical policy for a young person aged 16-25 can be more than double what older motorists pay. Some families just can’t incur this expense. They instead take huge risks and “roll the dice” with auto insurance fronting.

Some auto insurance carriers have begun to fight back against fronting

One such practice is insurers will name the lowest rated driver in a household as the primary driver of one vehicle. It is done to assume the risky driver will drive the car of the person that has a good driving record at some point. Carriers do this to average out the risk they are taking to provide coverage. With teen insurance rates going up more than other age groups, parents have been forced to front more than ever. In fact, in a recent insurance institute study, nearly 2 out of 3 parents said they would front for their teenager in order to get cheaper car insurance pricing.

This practice has an impact on all motorists in the form of higher rates

Carriers “bake in” higher costs for all drivers, knowing that the practice of fronting is widely used. If everyone would buy the proper coverage, then the average rates would go down nationwide.

Get Teen Car Insurance Discounts

If you need cheaper teen insurance because the current cost of insuring them is just too much, take action. Enroll your teenager in a certified safe driving class. This discount can save you 10% or more. Additionally, if your child has a B or higher GPA, you can qualify for a good student discount and save an additional 5% or more. Auto insurance fronting does not pay off and should never be used. To get a cheaper car insurance rate, check out goodtogoinsurance online. In about 4 minutes, you can compare ten or more quotes and save hundreds.