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What is Car Insurance Fronting?


Car insurance fronting is a less-than-honest way of saving on car insurance that has been going on almost as long as there have been cars. The method involves naming a driver with a good record as the primary driver on a car that is really driven most by someone with a poorer driving record. While the switch can save money on car insurance, it can also get your claims denied.

Whether fronting is ethical or not does not matter in the long run. Even if it was considered an ethical practice, it is still not a smart thing to do. This is because you can save a few hundred dollars through fronting and lose thousands from an uncovered claim. Be careful when listing a young driver on your car. If your teen only drives the car on weekends, that may count as an occasional driver. You must have a frank discussion with your agent to find out if you should list your teen as a primary driver.

The temptation to use fronting is strongest for young drivers. Anyone under age 25 automatically has higher rates. This is because less experienced drivers are more prone to accidents. In many cases, parents will engage in fronting on a car driven by a teen household member. In many jurisdictions, insurers have taken to naming the poorest rated driver in any household on at least one car, with the assumption that eventually, the bad driver will get in the good driver’s car.

Such drastic measures have become unavoidable. In fact, approximately 60 percent of parents said they would consider fronting to help a child save money on car insurance. But when insurance is not rated properly for the risk, everyone’s premium goes up. By charging higher premiums for at-risk drivers, insurance companies help spread the risk fairly among drivers.

The good news is that there are ways to save on your teen’s car insurance that wont’ get a claim denied. For instance, many insurers offer good-student discounts for teens who maintain at least a B average in school. Completing a driver’s education course can save money as well. Some companies even offer their own driver training to teens that have been in accidents in exchange for a discount.

The kind of car makes a big difference for premiums as well. Choose an inexpensive used car with a low theft rating and high safety rating. You can also install a security alarm in your car to reduce rates further. Another way to save is by increasing deductibles on collision and comprehensive insurance.

Finally, you must shop around for the best rates. Different companies rate young drivers differently. Some do a better job of educating young drivers and therefore are able to insure them at a lower cost. Other companies specialize in high-risk drivers and therefore can offer insurance at a better premium than other companies can. Enter your zip code in the box at the top of this page and we’ll direct you to companies that may be able to get you a cheaper car insurance quote.