Study Finds Nearly 42% of Parents Engage in 'Fronting' for Teen Drivers

Published: Fri 11 Jun 2010

Larry Roth

Study Finds Nearly 42% of Parents Engage in 'Fronting' for Teen Drivers

Parents run the risk of colossal financial repercussions by fraudulently telling auto insurers that they are the primary drivers of their children's vehicles.

New research sponsored by First Car Magazine and Young Marmalade discovered that "fronting," as it is known, is quite prevalent, with 41.79 percent of parents guilty of the practice.

Fronting can substantially reduce car insurance expenses, but it is also against the law and could lead to prosecution for insurance fraud.

Tim Franklin, a member of Cooperative Financial Services, explained that many parents believe fronting is an acceptable way to save on auto insurance.

"The view that motor insurance fronting is harmless and does not hurt anyone could not be further from the truth," he commented.

"Parents who believe they are helping their children save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future," he added.

Aside from the legal woes, the financial consequences of fronting could be disastrous. As Nigel Lacy, the co-founder of Young Marmalade, points out, if the insured child has an accident and injures a third party, the insurer may deny the claim if fronting is discovered, sticking the parent with a potentially six-figure bill.

Insurers caution parents that the practice of fronting is remarkably easy to uncover if an accident takes place.

An auto insurance company can simply question neighbors about who drives the wrecked vehicle most frequently, thereby uncovering the fraud and creating a valid reason to deny the claim.