'Fronting' putting young drivers at risk

Norwich Union said fronting was an "increasing problem" in commercial motor insurance, could invalidate cover, and might also end up putting the lives of younger drivers at risk.

Mike Smith, commercial motor technical manager at Norwich Union, said: "From the claims we have come across, we have seen some devastating consequences as a result of fronting.

"The person being insured is usually a family member, often a 17 or 18 year-old son or daughter who has found it difficult or too expensive to take out their own insurance.

“Although this may seem as though they are doing that family member a good turn by saving them some money, and the credit crunch may make this appear even more financially attractive, the risks to both the company and that young driver are substantial.

“Fronting, in most instances, will invalidate the company insurance policy, leaving the business to pay for any damage to their vehicle. Also, if any other driver is involved in an accident, while the insurer will be required to meet any liability cost under the Road Traffic Act, they can seek recovery of any such payments from the policyholder."

'Totally unsuited'

Mike went on to explain that it was not just money that was at stake, but also the safety of the young driver, passengers and other road users.

"Sometimes the fronted vehicle is a high performance car and totally unsuited to the young driver's experience, driving behaviour and attitude," he said.

"To avoid any insurance cover problems, fleet managers need to be open and up-front with their broker and insurer, and ensure they are aware of who owns and drives all vehicles insured on the company policy."

He added: "Brokers should ensure that fleet managers review company policy on who can drive company vehicles for social, domestic and pleasure use, including age of driver, and ensure adequate controls are in place including licence checking.

"Although fronting has largely been a car issue, vans are becoming increasingly popular amongst young people for the extra space they provide for sports equipment. Whether for car or van, the true cost of fronting can be devastating."

According to Department for Transport figures, four people are killed or seriously injured in crashes involving young drivers every day in the UK, and 17 to 20 year old male drivers are almost ten times more likely to be killed or seriously injured than more experienced drivers.