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What is car insurance fronting

8 April 2019

Being able to save money – whether it’s on a coffee, your next holiday or car insurance – can be an important factor in any purchasing decision.

There are ways you might be able to save when you buy car insurance, but car insurance fronting – or insuring under a different name – shouldn’t be one of them.

Though it might be tempting, for example, to take out car insurance on behalf of your teenaged child to save them money on their policy, it could end up costing them more in the long run.

Here are a few things you need to know about car insurance fronting.

Car insurance fronting defined

Car insurance fronting is the act of taking a policy out on behalf of another driver. By doing this, you’re not providing your insurer with the information they need to accurately assess the risk of the driver who’s actually responsible for the car being insured.

It’s important to note that you can name other drivers on a policy if they’ll be using the car, just be sure the person most regularly driving the vehicle is listed as the main driver.

Why you shouldn’t do it

Apart from the obvious bad karma, there’s a much more serious reason why you shouldn’t engage in car insurance fronting.

By disclosing information at the time of taking out a car insurance policy, you agree that it’s true when it’s submitted. Deceptive behaviour, such as deliberately leaving out correct or important information (like putting your own name on your child’s car insurance policy), is illegal and considered to be insurance fraud.

As a criminal offence, the consequences may include having a claim, or part of a claim, rejected – potentially leaving you with a big repair bill if you’ve been involved in a car accident.

What’s more is that there are other ways that you can save on your car insurance, you just need to know where to look.

How to save on your car insurance (without breaking the law)

Car insurance for young drivers, or other types of drivers generally considered to be high risk by insurers, can be expensive, especially for drivers under the age of 25 who can often pay more on their excess. Here are a few tips for ways you can save on it:

  • Buy your car insurance online – most insurers offer discounted rates. For example, if you purchase Suncorp Comprehensive Car Insurance online you’ll receive a $50 discount. Additionally, if you’re under 25 years old and your parent also has Suncorp Comprehensive Car Insurance, you’ll receive a 10% discount on your own comprehensive premium.
  • Choose a higher excess to lower your premium.
  • Pay your insurance annually to avoid additional fees.
  • If you’re a Suncorp policy holder, download and manage your policy via the Suncorp App for access to cheaper petrol from participating retailers.

Suncorp has a variety of car insurance policies designed to cover any driver from the unexpected.

Explore Suncorp Car Insurance

Car insurance fronting is never a good idea. If you’re having trouble determining who will be main driver of your vehicle, consider who will be driving it the most and, by extension, who will be responsible for its maintenance.

At Suncorp, we encourage you to disclose any necessary information required for a new insurance policy as accurately as you can. If you’re not sure about something, or you need to talk anything through, call us today on 13 11 55 between 8am - 7pm AEST/AEDT, 7 days a week.

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Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Consider the Product Disclosure Statement before making a decision about this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

* This data is based on claims accepted for Suncorp Insurance Comprehensive, Fire, Theft and Third Party Property Damage and Third Party Damage Motorcycle Insurance Policies between between Jan 1 and Dec 31, 2018.

^ This data is based on claims accepted for Suncorp Insurance Comprehensive and Third Party Car Insurance Policies between between Jan 1 and Dec 31, 2018.