| |
Car Insurance -
'Fronting' rates shown - 22/10/2007
|
|
| |
| |
Young drivers who claim that their parents are the main drivers of a vehicle they have purchased is a type of car insurance fraud known as "fronting".
The Financial Ombudsman Service said this weekend that car insurance firms are currently rejecting one thousand claims a year under the fraud scheme.
It was also claimed insurance companies are dismissing more and more claims because the main driver of the car was not insured properly in this manner.
Previous research by Zurich Insurance has revealed that many parents are unaware that fronting for their children for insurance purposes is a fraud.
Nearly one tenth of drivers were found to front for their children and grandchildren in order to save money, yet more than half of this amount were not aware that they had committed fraud and nearly one fifth of this group believed their actions were justified because they legally owned the car.
Adrian Webb of esure insurance, speaking to the BBC, said: "The truth is, any act of deception to try to get a lower insurance premium with your insurance company is tantamount to fraud."
While insurance companies are being criticised for not doing more to prevent this type of fraud, young drivers who are caught using this scheme face a court appearance and up to six penalty points on their license.
|
|
|
|
|
| |
|
|
|
| |
| |
|
|
| |
| |
 Car Insurance. Do I have to have car insurance? Do I need car insurance? What...
|
|
| |
|
|
|
|
Car Insurance
Guides |
|
|
|
|