‘Fronting’, or using another person’s better driving profile in order to obtain a lower car or motorcycle insurance quote, is something that occurs in countries across the globe. Many of us know someone who has used the fronting technique when purchasing insurance, but it can have serious consequences for the “insured driver” as well as for third party victims who find insurers unwilling to pay out. Buyers are reminded to provide accurate information throughout the buying process – and are bound by what they say in the declaration.
Take Care When Getting a Quote
At DirectAsia.com, our increasing share of the Singapore car insurance market is down to a number of things: cutting out the agent; giving customers the power to buy the features they actually need; and understanding the diverse needs of Singapore’s drivers.
Another cornerstone of our offering is that we make our policies as easy as possible to understand. This means simple, jargon-free policy wording.
We have taken great care to clearly explain what we mean by Policy Holder, Main Driver, Named Drivers and Authorised Drivers – as we do with all aspects of our policies. The four types ensure you get the flexibility you need, and a premium you want to pay.
Honesty is the Best Insurance Policy
We rely on our customers’ honesty when getting a quote – and require that the information provided at time of quote tallies with the facts surrounding an accident. As regards this topic, the driver behind the wheel at the time of an accident must fall into one of four categories (stated at the quote stage) – as described in the policy wording.
Here’s a quick run-down of each:
- The policyholder should be the registered owner of the vehicle – we cannot insure you if you are not the owner of the car.
- The main driver is the person that uses the car most frequently – they must be aged between 25 and 70 years old, with at least 2 years’ valid driving licence. He does not need to be the policyholder (car owner). He should be the person using the car most frequently.
- Named drivers are occasional drivers you name under the policy. They are drivers aged below 30 and/ or with less than 2 years’ valid driving licence (Young and/ or Inexperienced Drivers). For DirectAsia.com, you only need to name young and/ or inexperienced drivers on your policy and you can name up to 2 people.
- Authorised drivers are people that you give permission to use your car. Anyone can be an authorised driver so long as they are more than 30 years old and with more than 2 years’ valid driving licence. Their licence should also not have been suspended or cancelled in the last 5 years.
Why is DirectAsia.com so particular about who the main driver is (ie. the person who uses the car most frequently)?
We underwrite and price on the information we receive and honest disclosure is fundamental to the insurance contract. Pricing is based on risk, and the age and experience of the driver is a major factor in determining price.
The importance of the accuracy of the named main driver is very explicit in the quote process on our site, as it is a fundamental basis for calculating the premium you would pay. This is explicitly stressed, and forms the basis of the contract which the customer enters into.
There are, however, cases in which the main driver (the person who uses the car most of the time) hides behind a better profile driver. This is a fraudulent behaviour called ‘fronting’.
It is DirectAsia.com’s policy to pay fairly and promptly for all legitimate claims and to carefully consider all claims which suggest ‘fronting’ so that we can bring more competitive rates to the motoring industry.
Keeping Our Customers Happy
The vast majority of our customers appreciate our straight-talking approach to insurance; quick, low-cost, high quality online insurance that is easy to understand, and delivers exceptional customer service when a claim is made.
Unfortunately, there are occasionally customers who do not read the terms and conditions of their policy properly – which can mean they enter inaccurate information at the quote stage. Others choose to consciously provide inaccurate information. These individuals may find their claims repudiated and their policies cancelled.
Accurate Quotes = Lower Premiums for You
With constantly improving fraud detection measures, it is becoming easier to identify drivers who do not provide accurate information at the quote stage. Our ability to do this also helps us keep premiums down for the vast majority of our customers – who are honest and therefore benefit from our world-class car insurance claims service when they need it.
Providing Accurate Information – How and Why
If you know you have provided accurate information when buying one of our policies, then you will have genuine peace of mind that you are covered.
- Be honest: if you use the car more than anyone else, you must declare that this is the case.
- If appropriate, take out insurance under your own name, and start earning your own No Claims Bonus. The sooner you get recognised on the system, the sooner you can reap the benefits.