It has been revealed that the practice of fronting has climbed dramatically over the last two years according to a recently published report. The rise in the number of cases where parents insure their childs car in their own name to try to keep costs down, but in fact, the child is the main driver of the vehicle, is seen by law as a fraudulent act of deceiving the insurer.

Fronting has now become a major car insurance fraud problem, but the report is set to uncover that this and other schemes of submitting falsified information by consumers has increased by 30 per cent since 2007.

These deceitful claims are now costing the insurance industry billions of euros each year and are set to continue to rise. It is thought that the crackdown on insurance cheats when they are making a claim has actually led to this climb in fraud, but the industry is determined to attack these figures too.

One insurance expert said, “Through closer scrutiny of proposal forms and claims, as well as the exchange of information through industry-wide databases, the net is tightening on the cheats. Anyone who sees insurance as a soft touch can end up with a criminal record, credit problems and costlier and harder-to-obtain insurance.”

Although fronting is classed as a fraudulent act, many parents are unaware it is a criminal offence and carry out the practice in blissful ignorance, but industry bosses are appealing to parents to avoid the exercise as it may result in severe consequences.

The reality is that if fronting is detected when a claim is made, insurers can refuse to pay out for any claims or can settle a third party claim and recover the cost from the parent as the policyholder. However, if the insurance company denies the claim, the young driver can be treated as an uninsured motorist and face a large fine and even penalty points on their license. They are also likely to face higher insurance premiums in the future.

The report has also highlighted an increase in walk away claims which involve the insurer being suspicious of possible fraud, so will ask for further details from the claimant, at which point the claimant no longer pursues the claim. Although this is not confirmation a fraudulent claim has been attempted, the insurance industry believe it is a likely indicator of such behaviour.

When a child enters the teenage years, the biggest dream he has is to start driving a car. And the day they have a license, its like the permit to go anywhere around. So, it is important to choose the best and affordable insurance for your teen. Although getting cheap car insurance for young drivers can be tricky, it’s far from impossible.

Parents are very concerned about their child when they start driving. Parents play an important role in guiding their children about the pros and cons of safe driving. Statistics show that teenage drivers cause the highest number of accidents.

Since teenage drivers are new and do not have much experience, insurance companies charge higher premium rates. They know that new drivers have a tendency to get carried away and drive fast. Gender also plays a role in fixing insurance rates and premiums. Teenage boys are seen as greater driving risks than the girls.

Insurance companies try and communicate with both the parents and the child about driving rules. Insurance company executives can be a great guide helping you to choose the right scheme plan for your child.

As your child is new on the road, purchase a car that has well equipped safety devices. Avoid buying sports cars as they may indulge them into high speed driving. Communicate with your child about keeping a clean driving record, following rules and avoiding intake of alcohol.

There are a few more things that you can do to help get cheap car insurance for young drivers:

Make sure your child has completed a course from the driving school.

If your child has good grades, the company might consider it and offer discounts.

Classify your teen as someone who drives to and from school only. Less driving miles means a smaller chance of getting into an accident.

Discuss the results of unsafe driving so that they dont end up having an accident.

If you are looking to get cheap car insurance for young drivers, it’s good to know all the available discounts being offered by insurance companies. Getting multiple saving discounts and result in hundreds of extra dollars in your checking account.

Q: There is a clause in my insurance policy that talks about something called auto deductible reimbursement. I have never heard of this before. Can you explain what this means? Thank you.

A: An auto deductible reimbursement is actually a good thing to have. It usually only costs a few dollars a month and will pay you back your deductible, usually up to $500 dollars, in the event you are in an accident.

Most, if not all, insurance policies require you to pay a deductible in the case you have to file a claim. For instance if you are in a covered accident and your car will cost $1000 dollars to get fixed, your are responsible for the deductible on your policy. So you would pay $500 dollars and your car insurance company would pay $500.

If you have an auto deductible reimbursement policy in the above instance you will receive your $500 dollars back under the terms of the policy. In the case outlined above your out of pocket expenses would be zero if you have auto deductible reimbursement insurance. This type of policy can usually be added as a rider to your existing policy or it can be purchased separately if desired.

Lastly, we strongly recommend that you take a few minutes to sit down and compare auto insurance quotes online from several different companies. Doing some comparison shopping will give you a good idea of whether or not you are overpaying for your coverage and is a great way to save hundreds of dollars each year on premiums.

Car insurance premiums are calculated keeping in mind the risk factors. As is said Hope for the best but be prepared for the worst. Same, theory is used in determining the car insurance premium rate. The insurance company pays heed to how many customers are likely to make insurance claims depending upon their circumstances. The actuaries (a professional statistician who predicts future events based on number of events and probability of occurrence) try all sorts of permutations and combinations before determining the premium. They take into account the cost to be incurred in settling the claim, companys operating cost, funds to be placed in the contingent reserve, and taxes payable.

Factors affecting your car insurance premium:

Place where you reside: The place where you live is important. If you are residing in big city then the probability of accidents and thefts are high thus translating into greater premiums. Also, if you reside in a hilly area prone to earthquake or landslide then the risk of natural calamity is more and thus again the premium would be high. But, if you reside in low risk area then the premium would be less.

Your occupation: If your occupation demands a lot of driving and you use your own car for it then the car is mostly on the road and the risk of accident is high. In short, if you drive a lot then the premium would be on higher side.

Car type, model and make: The car model and make determines the risk factors associated with it. For example, SUVs would any day perform better in the collisions and hence the injury to the occupants and vehicle would be less severe. On the other hand, high end car models may incur more repairing costs and would cost more to insure.

Your driving history: It is one of the major factors in establishing your car premium. For example, if you have a clean record with no accident history you can get discounts upto 50% on your car insurance premium by the way of No Claim Bonus.

Your age: Age is also quite detrimental in deciding the premium. If you are young boy around 18 years then, you may indulge in high risk driving. Certain age brackets have to pay more premium that others.

You can opt for online vehicle insurance once you have calculated your premium by furnishing required details and have decided your insurance provider. The online vehicle insurance helps you get immediate policy issuance as it is a hassle-free and swift process.