Car insurance companies are rejecting thousands of claims every year by parents and children who are working together in a process called ‘fronting.’ Not only that, using the process to drive down the cost of motor insurance is illegal and could result in major fines.
The fraud is most common when a parent insures a car as a named driver, but the main driver is actually a child or other young person. The premium costs are much lower, but any claims on the policy could easily be rejected. Young drivers could also find themselves in court.
Insurance for young drivers can be incredibly expensive, particularly dependant on the area inhabited and the type of vehicle driven. Drivers without a no-claims bonus are deemed a higher risk to other road-users, and charged accordingly.
Insurance companies warn that deception of this type is tantamount to fraud and can result in rejected vehicle insurance claims.
Car insurance company warning
Financial Services > Car lnsurance > News
Car insurance company warning
Mon, 22 Oct 2007
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