Auto Insurance Fronting

Let’s face it, car insurance is expensive, and it keeps going up almost every year. For individuals and families on a tight budget, it might be an expense that is out of reach or just too costly. 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 this:

  • 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 using the vehicle the most.
  • This trick can save a thousand dollars or more per year, but there’s a catch.
  • If the real 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 on-line.

Many people are not aware of the risk they are taking when fronting on car insurance. They just 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 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.

Listing Young Drivers on Your Auto Insurance Policy

You should carefully think before adding a young driver onto your auto insurance policy. If you have a teen that 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 the weekends and not Monday through Friday, then that can qualify as a part-time driver. You should call up your insurer before you add 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.

Listing Young Drivers on Your Auto Insurance Policy

It is very tempting for parents to use fronting for their teenage children
This is 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. This 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. Also, if your child has a GPA of B or higher, 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 good2go online. In about 4 minutes you can compare 10 or more quotes and save hundreds.