Car Insurance – The Cost of Fraud

June 13, 2017 · Posted in FAQ 
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There are many people having difficulty paying their car insurance at the moment and as a result, some have decided to find ways to make their policy cheaper. With insurance costs on the rise and job security uncertain, some people are eager to lower their cover as far as it will go but the problem is that these cheaper methods are very often illegal. Some Brits are so anxious to reduce their costs that they will consider these illegal methods in order to cut the price of their car insurance premiums. The worrying this about this trend is that these shortcuts may end up costing customers more in the long run and even prevent them from getting cover in the future. Fraud is one of the many methods that people have been using in an attempt to cut down on their premiums. It is committed when the application form is filled out incorrectly, with the wrong details. This is even the case when seemingly insignificant information such as contact details are incorrect. Another type of fraud that can be committed is known as fronting and is quite common. This is when an older and more experienced driver claims to drive a car that is mainly driven by a new driver. Car insurance policies are very often cheaper for older drivers than new ones and this is why fronting has become very popular. Fronting is not only fraudulent but it is also detrimental to the young person as they may find it very difficult to find reasonable car insurance quotes in the future. Due to all this fraudulent behaviour, the number of claims refused by insurers has soared by nearly a third in the last six months, according to a leading insurer. A price comparison website has also found that there are many drivers who are willing to adjust the facts in order to save a few pounds. A survey of over 1,500 motorists found that only 39 per cent of those questioned would not consider lying to lower their car insurance premiums. A much better and safer way of finding cheap car insurance is to compare different quotes from a variety of companies online.

The illegal act of fronting has become a very popular way to try and reduce the cost of your car insurance policy; however, this can mean that younger people may find it difficult to get reasonable car insurance quotes in the future. A study found that only 39 per cent of those questioned would not consider lying on their application form in order to try and lower their car insurance premiums. It is more successful and also safer for find cheap car insurance by comparing prices online.

By: Gill Critchley

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