“It was good to hear Steph McGovern talking about the issue of fronting on BBC Business Breakfast this morning. This is a widespread issue that has serious implications for anyone involved, and rather than a cost cutting exercise can actually lead to huge financial losses.
“Fronting is when a parent tells the insurance company that they are the main driver in order to reduce the cost of insurance, when in truth it is their child who drives the car most. However, in the case of a claim, insurance companies will quiz all parties carefully and if found to be fronting, the cover will be invalidated – which could leave the claimant with major bills to pay and potentially finding it difficult to get cover in the future.
“Insurance premiums for young drivers are typically higher to reflect the number of incidents in which they are involved. On a national basis, 1 in 5 young drivers are involved in an accident. However, there are solutions that are helping to reduce the cost of young drivers’ insurance, thanks to improved safety records.
“Telematics has been a major factor in the reduction of premiums for drivers aged between 17 and 25. Marmalade’s New Driver Insurance is based on an advanced telematics solution that not only helps to reduce premiums by up to 50% but also helps make young drivers much safer on the roads. With Marmalade’s customers, 1 in 20 is involved in an accident within the first six months of passing a test - four times less likely than the national average. Rather than starting with high premiums that can be reduced as time goes on, Marmalade trusts young people to drive well from the outset. The team provides ongoing support and interaction to help its customers avoid making mistakes on the road.
“Parents have a key role to play in helping to develop their children’s driving skills, and making sure that they have the right level of legal protection is an important first step. By working with insurance companies rather than against them, parents can help their child to be a safer driver and benefit from lower premiums as a result.”