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People adopt it to reduce the coverage premium, but it is illegal and can land you in trouble. It happens when the insurance policy is in the name of a person who may, in reality, never drive the car or use it seldom. But people use it to reduce the costs of getting the policy for a young driver or someone who recently passed the test. 

It is an inappropriate method of getting a cover and may lead to criminal charges against the car owner. Moreover, it can invalidate the plan and cause a huge property loss during a disaster. 

How Is the Main Driver Determined?

The main driver is the person who drives the most mileage or normally uses it to travel or keeps the car outside their residence.

How Does It Happen?

It can be applied if a youngster often drives the parent's car to the college or a shopping centre. The average protection cost for a 17-year-old is considerably higher, and the cost decreases as one grows older and becomes more experienced. 

So inexperienced drivers pay the highest cost, and parents and grandparents can lessen the price by becoming the main driver. But if someone is found fronting, they may find it difficult to get insurance.  

Firms use many techniques to prove the charges of fronting, and they may try to detect the fraud even when providing the claim. However, if anyone is found liable, they will not get the claim, which can even lead them to court. 

How To Reduce Insurance Costs?

  • One can use other methods to lower the costs, like making accurate mileage predictions and changing the driving style where the annual mileage is low. 

  • In addition, one can adopt customized policies and improve the vehicle's security by installing various devices to lower the premium. 

  • If you suspect any such fraud has been committed, you can report it to the authorities.

Date Published: Sep 12, 2023

Types of fraud

A-Z of fraud

To help understand which fraud you've been affected by, we've categorised them into an alphabetical list.

What is fraud and cyber crime?

Cybercrimes can be of two types. First, it can be cyber dependent, where the fraudsters use online devices to convince the victim to accept their offers.

Advance fee fraud

If you are trying to get a loan for a house or a car, they ask to meet the provider to get the financing arrangement and pay the finder's fee in advance.

Corporate fraud

Corporate frauds can be complicated, committed either by the firm or an individual. Nevertheless, it mostly involves cheating where the employee or the firm.

Individual fraud

There are many types of individual frauds related to advance fees, investments, insurance brokers, bogus tradespeople, Ponzi schemes, pension liberation.

Online fraud

Hence the number of cases of online fraud is increasing each year, and most such cases include – account takeover, direct frauds, or scams related domain names.

Identity fraud and identity theft

The criminal uses the stolen identity of another person living or deceased to conduct unlawful activities like obtaining goods or services in another's name.

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