Fronting describes a person who falsely lists an experienced and lower-risk driver (usually a parent) as the main driver of a car to purchase a cheaper car insurance policy.
A survey of a nationally representative sample of 1,200 Australian adults was commissioned by leading car insurance comparison service comparethemarket.com.au and conducted by an independent research agency. It revealed that more than half of respondents (53%) would insure their child’s car in their name if it meant they got a cheaper car insurance policy. Additionally, nearly 1 in 5 Aussies (16%) admitted to insuring their child’s car in their name.
“Vehicle owners who purchase cheaper car insurance by listing a more experienced motorist as the primary driver are taking a serious financial risk. Misrepresenting the details of a driver for an insured vehicle can be grounds for a claim to be denied, potentially leaving drivers with a massive accident bill,” said Abigail Koch, spokesperson for car insurance comparison service comparethemarket.com.au.
Comparethemarket.com.au has listed steps for younger drivers to follow in order to reduce their insurance costs, without breaking the law:
- Name yourself main driver – Not only is this a legal requirement, but it could help build up a no-claims bonus, which could entitle you to lower premiums in the future.
- Choose a higher excess –Choosing a higher excess may lower premium costs. If you can afford to pay it in the event of a claim, this may be the way to go.
- Pay annually – Some insurance companies can charge you additional fees if you decide to pay monthly. Paying annually may reduce the overall cost.
- Check out the car tech – One example is black box technology which can record your driving habits; from the time of day you drive to the average speeds and mileage used per year. Understanding driving habits could help reduce future premiums. This may only be available with certain insurers, so ask your provider how you can save through car safety features.
- Consider third party cover – Ask for quotes to get the best value in comprehensive and third party insurance. Below are some brief descriptions of each type of car cover available:
- Comprehensive cover: This covers the cost of repairs and replacements to your car as well as the damage caused by your car to another person’s property. It can also cover the cost of emergency repairs, transportation costs and damage caused by other drivers.
- Third party fire and theft cover: This can cover for the loss or damage to your car if it is stolen or damaged by fire. Additionally, it covers your liability for any damage caused by your car to another person’s property (e.g. another driver’s car).
- Third party property cover: This covers damage that you have done to another person’s vehicle or property. This doesn’t cover damage to your own car.
- Compulsory third party insurance (CTP): This covers drivers who are liable for the injuries to another person in the event of a car accident. This can include other drivers, passengers, cyclists and/or pedestrians. This does not cover damage to any property.
- Shop around for policies – There are many different insurance policies to choose from, so have a look around. Compare quotes and cover levels to find the right policy for you at a good price.
Comparethemarket.com.au is a comparison website that makes it easier and quicker for Australians to compare and buy products and services they rely on in their everyday lives. Whether you’re looking for a good deal on your car insurance, health cover for you and your family, the lowest fuel prices in your area, or an energy provider that suits your needs, then go to comparethemarket.com.au. It’s a completely free service and enables Australians to make purchasing decisions with greater knowledge, confidence and savings.
 A Pure Profile survey