When liability car insurance is purchased, many drivers are concerned with securing the best possible rates and coverage. Others go as far as attempting to lower their premiums by the risky practice known as fronting. While the whole idea may sound like a quick way to save one some cash, the hazards associated with fronting in liability car insurance Fronting in Liability Car Insurance and How to Protection Yourself
Here, we will explain what fronting is, the dangers it presents for you, and how to protect yourself from the consequences :
What is Fronting in Liability Car Insurance ?
Fronting means that a Primary driver of the vehicle falsely lists someone else (usually a family member or a friend) as the primary driver on the insurance policy. Young or high-risk drivers usually do this so as to take advantage of the lower premiums offered to older or less risky drivers. In this scenario, a parent may report themselves as the main driver of a car owned by their teenager to score cheaper rates for their child, whereas the teenager uses the car the most.
This may sound simple, but it is very much insurance fraud, and it can come back to haunt you.
The Dangers of Fronting in Liability Car Insurance :
1.Policy Cancellation :
If fronting is detected, the car liability insurance policy could get cancelled. Insurance companies rely on the information that you provide to evaluate the risk and determine the premiums accordingly. Should it be found out that you have committed fraud by saying any other person was the primary driver, a cancellation of the policy will be favored, leaving you with no coverage at all. Driving without insurance is illegal in most states and comes with the consequences of either paying fines, license suspension, or civil suits.
2.Denied Claims :
The second big threat is that your claim may be denied. If you were to cause an accident and the insurance company discovered that fronting had taken place, they might deny your claim. Alternatively, the insurance company could pay your claim partially, or worse, refuse to pay anything at all. What this means is that if such an accident took place, you would be responsible for paying all damages and medical expenses, regardless of whether you were at fault in the accident or not.
3.Criminal Charges and Legal Consequences :
Fronting is insurance fraud, and in many jurisdictions, an actual crime. Beyond the loss of your insurance coverage, you may become subject to penalties or civil suits, depending on the extent of the fraud. On another note, being sentenced for insurance fraud may land you with criminal records, making the future procurement of insurance or loans a hefty challenge.
4.Higher Future Premiums :
It is going to cause severe negative implications for your future insurance premiums if your policy was cancelled for fronting or your claims were denied. This will mean all that fronting saving is going to turn around and bite you in the rear, as your new insurer would be inclined to view you as a risk driver and jack up your premiums, probably to the level of any initial savings that you gained through fronting in the first place.
How to Protect Yourself from the Dangers of Fronting in Liability Car Insurance :
As you have now understood the extreme dangers posed by fronting in liability car insurance, we explain some strategies to protect yourself:
1.Honest with Your Insurer :
The greatest step to take to avoid fronting is to be honest with your insurer. Always give accurate information regarding who is the primary driver of the vehicle. If you turn out to be a high-risk driver, like a youngster or someone with a not-so-clean driving record, it is better to search for a fitting policy than to try to beat the system.
2.Investigate Usage-Based Insurance (UBI) :
If you are concerned about the heavy burden of liability car insurance, check into usage-based insurance (UBI). Many insurers have UBI programs in which your premiums are based on how much and how safely you drive. These programs use a device or mobile app to track your driving habits, and safe drivers can earn significant discounts. UBI can provide a legal and effective way of lowering your premiums without running the risk of fronting.
3.Search for Discounts :
Instead of paying for fronting, go for any legal discount that an insurer might offer. A whole lot of companies will allow discounts for good driving records completed defensive driving courses or simply for bundling auto insurance with home or renters insurance. Basically, these discounts work to bring down your liability car insurance premium without the legal risks of fraud.
4.Grasp Your Policy Needs and Coverage :
When in doubt as to how much coverage you want, approach your insurance agent. Understanding your policy will help you avoid typical errors and ensure that you are adequately insured. If you see that liability car insurance is expensive for you, you can either reduce your coverage limits for now or check for other kinds of policies for the time being, like state minimum liability coverage, until you can really afford broader protection.
Conclusion :
The dangers of fronting in liability car insurance entail huge costs, such as cancellation of policies, claims denied, and authorities sniffing around for criminal charges. Although manipulating your insurance information may seem quite tempting to benefit from lower premiums, we can confidently say that the risk outweighs the reward. However, by being honest with your insurer and considering other discounts and options like usage-based insurance, you will find far more affordable and wholly legitimate solutions to your liability car insurance needs.
Protect yourself from fraud, avoid making costly mistakes, and ascertain that the insurance coverage is both safe as well as effective.
