You have decided to purchase a motor vehicle.  You know that you have to get it protected against theft and damage. You therefore know that you have to get a motor vehicle insurance policy. But did you know all or some of the dos and don’ts of a motor vehicle insurance plan or cover? Let us look at a few.

You get quotes and realise that because you are young or maybe because of the area you live in in considered high risk, the risk to the insurance company is high, and therefore the premiums are high. You really have to get the motor vehicle insurance¸ but do not want to pay the high premiums. You got to make a plan.

You ask someone else to take out a motor vehicle insurance policy on their name for your car. This is known as fronting. In most cases, it is when a parent takes out the motor vehicle insurance on his or her name, as the main driver of the vehicle, and adds the child’s name as an additional drive. This despite the fact that the child is the main driver of the vehicle. Fronting is used by the young driver to reduce the cost of the insurance premium.

However, one must realise that motor vehicle fronting is illegal. If and when the insurance company finds out about it, the motor vehicle insurance policy shall be voided and cancelled, and all premiums paid will be lost. Any no claim bonuses accumulated will also be lost. And one must realise that once a motor vehicle insurance policy is cancelled by an insurance company, it will be virtually impossible to get another motor vehicle insurance policy again. So why take the risk?

Looking at the ever increasing costs of obtaining a motor vehicle insurance policy, coupled with the fact that majority of insurance companies view young drivers as a very high risk, the young driver opts to go for motor vehicle insurance fronting. The main reason for doing this is to get a motor vehicle insurance policy at a far lower premium that he or she would otherwise get.

This is because the same insurance companies regard older (the parent) drivers as a much lower risk, thereby reducing the cost of the motor vehicle insurance premium. However, one has to and must realise that fronting is illegal. It amounts to fraud and the policy holder may be charged criminally. So do not take the risk. It far outweighs the payment of the higher motor vehicle insurance premium.

As you may have guessed, a motor vehicle insurance policy is a contract between the insurance company and the policy holder. Common law, statutory law and morals dictate that when the contract is entered into, all information must be disclosed. The information must be correct and true. There must be no cover ups of false information provided by either party, especially the motor vehicle insurance policy holder. Any false, untrue or distorted information shall render the contract voidable and the policy holder’s name tarnished. So why take the risk.

Rather pay for the value received. Your no claim bonus will result in your premiums dropping and you being removed from the high risk grouping. Be legal.

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