esure responds to new MIB figures on fronting

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With new figures out today from the Motor Insurance Bureau showing that one in ten drivers believe that fronting¹ is a legitimate way of obtaining cheaper car insurance, esure highlights that this form of fraud is a false economy and likely to result in a policy becoming invalid in the event of a claim.

Mike Pickard, Head of Risk and Underwriting at esure car insurance, said: "Fronting is fraud despite many people thinking it is a legitimate way of massaging premiums down with a few white lies. The simple rule is that if you're deliberately trying to give your insurer the impression of a low risk set of circumstances when you know that the truth is different, you are probably fronting.

Cases where parents are effectively trying to transfer their own no claim discount to an inexperienced driver on a car they simply don't drive are fronting - plain and simple. Parents may be tempted to do this to slash the cost of their son or daughter's car insurance but, if detected, insurers could treat the policy as invalid. Honesty is the best policy when it comes to car insurance."

esure trains staff to be on high alert for tell-tale signals at either the point of sale or the claim stage, that the practice of fronting is taking place. Instances where fronting may be suspected, include:

A young driver trying to arrange car insurance, in a parent's name, where they are a named driver.
A parent paying for car insurance (with them as a main driver) but using a debit or credit card bearing their son or daughter's name.
A son or daughter giving their own mobile phone or email address as the contact details for a parent's policy.
A car being insured by a mature driver with a personalised numberplate that indicates it may be the named driver who has chosen the plate.
A second, 'starter' car (perhaps an older, lower-value vehicle with a small engine size) being insured by parents in their own name with a child as a named driver, when they already have an established higher value or high-performance car insured.
A parent switching their no claim discount onto a second car with a child as a named driver - so the child gets the benefit of the discount despite having no 'earned' discount themselves.
A theft claim whereby the vehicle was reported stolen from a different residential address to the home address of the policyholder - indicating that a son or daughter may live away from home at university and be the main driver of the vehicle.

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esure's press contacts:

Asia Yasir, Public Relations Officer: 01737 641305
Niki Bolton, Corporate Communications Manager: 01737 235070
Emma Lloyd, Assistant Communications Officer: 01737 641309
Adrian Webb, Head of Corporate Communications: 01737 641000
Email: pr@esure.com

Notes to Editors:

Fronting is the practice of a parent insuring a car that is primarily - or solely used - by a son or daughter in order to obtain a cheaper premium. Often, the parent uses their address knowing that the son or daughter is actually using the car in a different location such as college or university. With a fronted policy, the mature, experienced driver persuades the insurer that they are the main driver of the car and that it is based at their home to take advantage of their lower apparent risk factors, when in fact neither is true.

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