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What is car insurance fronting?


Car insurance fronting is when a lower risk driver insures a vehicle in their name, but the actual driver is someone else. It usually takes the form of an older driver fronting for someone who falls into a a higher risk category, such as a young or inexperienced driver.

Why do people insure their car under a different name?

The reality for many young drivers is that they have to pay more for their car insurance. This is because their age group, among other factors, represents a higher risk to insurers. In an effort to save money, some well-meaning parents falsely declare to insurance companies that they drive a particular car more than their son or daughter.

This is where fronting can become a problem. While it may seem like a harmless way to reduce a young driver’s premium costs, it’s actually illegal, and can also end up costing more if a claim is made but declined. But the good news is, there are a few ways young drivers can lower their premium without insurance fronting.

AAMI will rate their premium off the highest risk and the lowest risk driver. So, if a parent is listed as the regular driver on the policy, say after their son or daughter moved from their learners to their full licence, this has no weighting on the premium. This is because we base it off the youngest and highest risk driver which you can find in the Product Disclosure Statement (PDS).

Why you musn't do it

You risk your claim being rejected

If you’re being purposefully dishonest with your insurer, you could get your claim rejected in the event of an accident. This could mean having to pay damage costs out of your own pocket – then you’d really be up Ship Creek.

If you keep your name on your policy only you may be better off. Why? If you keep your driving history claims-free, you’ll receive the benefits of Safe Driver Rewards discounts provided you can avoid making any claims where you’re at fault.

You might end up on the wrong side of the law

Car insurance fronting is actually illegal behaviour that may put you in a worse situation than you bargained for. Aside from leaving you with an invalid insurance policy, it’s also a type of insurance fraud. It could make it harder for you to arrange affordable insurance in the future, and also make it more difficult to access other financial products, like credit cards and mortgages. It’s best to stick to the right side of the law.

How can I save money (without breaking the law)?

While car insurance for young drivers can be expensive, there are a few ways they may be able to save:

  • Buy your car insurance online and you may enjoy discounted rates. AAMI offers $50 off your new Comprehensive Car Insurance if you get a quote and purchase online.
  • Pay your premiums annually. Some insurers may charge you less if you pay annually as opposed to on a monthly basis, so it’s worth checking with your insurer. The good news for AAMI customers is this often works out to be cheaper when paying your insurance annually.
  • Take advantage of your insurers safe driving rewards programs. AAMI offers a Safe Driver Rewards  discount for every consecutive year you drive safely and when you don’t make a claim.
  • Vary your excess to save on your premium. As a general rule, the higher the excess, the lower the premium. Just rememeber that, in the event of an accident, you may have to pay that full excess amount, so make sure it’s something you can afford if need be.
  • Check whether you’re eligible for a safe driver rewards program. For example, young drivers can undertake the AAMI Skilled Drivers Course and, on completion, may receive a 10% discount on their AAMI Comprehensive Car Insurance premium. See whether you, your child or grandchild is eligible!

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

Explore AAMI Car Insurance


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

At AAMI, we encourage you to disclose any information required for a new insurance policy as accurately as you can. If you’re unsure or need to talk something through, get in touch with our friendly team today!


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Insurance is issued by AAI Limited ABN 48 005 297 807 trading as AAMI 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.