One in Five Drivers Admit to Car Insurance Fraud

One in five drivers admit to committing car insurance fraud and misleading their insurers, new research has found.

Research conducted by the Motor Insurers’ Bureau (MIB) and Aviva shows that 20% of UK drivers are misleading their car insurance provider. “Fronting” an insurance policy is the most common means of fraud, it was found.

Car insurance ‘fronting’ is when someone other than the main driver of a vehicle is incorrectly declared as the policy holder. An example of this would be a parent insuring a car and declaring themselves as the main driver in order to reduce the insurance premium, when in fact their son or daughter will be the main user of the vehicle. By doing this, motorists are committing fraud and under contract terms, could invalidate an insurance policy.

Although this false information may seem inconsequential, motorists are actually committing fraud and may well be invalidating their insurance policy. This could have serious implications for a driver who is involved in an accident and then finds that he is not covered under the terms of his car insurance contract.

This is a point emphasised by Ashton West, Chief Executive of MIB said: “”Insurance is about peace of mind and knowing that the cost of your liability on the road is covered. In the event that the driver of a fronted policy is involved in an accident, both the policyholder and the driver could be open to additional costs, penalties, fines and – potentially – prosecution. It simply isn’t worth the risk.”

With the high costs of car insurance, particularly for young drivers, who have the highest proportion of insurance claims, it is particularly important to shop around to find the best deal.

Aviva also offer some other helpful tips to help reduce premiums:

• Think safety – parking in a garage at night and fitting alarms and immobilisers will help drive down costs
• Choose wisely – a smaller engine vehicle without modifications means lower premiums
• Keep it brief – if you use the car infrequently, agreeing to a mileage limit can help keep premiums down
• No claims quickies – some insurers offer rapid bonus schemes that let young drivers earn a full year’s no claims bonus in as little as six months