Crackdown welcomed on car insurance fronting

Thu, 25 Oct 2007

Financial services advice and comparison company Gocompare.com has backed the decision to clamp down on the car insurance practice known as fronting.

The crime, which involves a parent pretending that they are the main driver of a car to save their child paying over the odds on car insurance premiums, has become so great that the Financial Ombudsman recently pledged to take action.

Research released earlier this year from Gocompare.com found that 66 per cent of parents would consider fronting on a car insurance policy to save their children from paying.

The practice is fraud and could see serious consequences for both parties if they do this on their car insurance policies .

Hayley Parsons, Managing Director of Gocompare.com commented that taking action on the fraudulent practice would see car insurance premiums falling for honest drivers.

"When we were researching the subject it was clear there were no active industry initiatives and little in the way of published data," she added.

Other issues that can see a driver's car insurance policy become compromised are speeding and drink driving.
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