The Association of British Insurers issued the warning recently after revealing that thousands of drivers are supplying their insurers with false information. Drivers are engaging in the activity in order to secure discount car insurance.
General insurance director for the ABI, Nick Starling, further commented by calling it a ‘false economy’ to try and deceive an insurer. Mr Starling warned that those engaging in such behaviour could find they end up with incredibly expensive bills if they become involved in an accident. Additionally it could be exceedingly difficult to procure insurance in the future if caught supplying false information to insurers.
Approximately 53 per cent of those who responded to a recent ABI survey expressed that they felt no qualms in naming an older driver with lower risk as a main policyholder. However, the industry body stated that such a process, referred to as ‘fronting,’ is actually illegal. The practice is most often perpetrated by the parents of adult children; in an effort to avoid the high insurance premiums related to young and inexperienced drivers, motorists are listing their children on their own policies.
In related news, those motorists that own cars that are not on the road will soon have to begin paying more to keep them. New legislation is slated to be introduced this coming spring that will make it mandatory for cars that are not on the road to have some minimal level of insurance cover. Failure to comply with the new regulations could lead to heavy fines and the ultimate seizure of the car by the authorities.