Car insurance fraud increases as Brits look to lower costs

Car insurance fraud, including ‘fronting’ has increased by 30% in the last two years as Brits look to lower costs but there are better, legal ways to save money on your car insurance.

Car insurance fraud is a big issue and is adding to the costs of innocent consumers, now adding some £44 a year to every household’s general insurance costs.

As Mark Monteiro of uSwitch.com comments ‘Committing insurance fraud is not worth the risk.

If affordability is an issue, there are steps you can take: look at increasing your excess, downgrade your cover, trade your car ins for one in a cheaper insurance class, but above all shop around for the best deal.’

By comparing car insurance quotes from a number of providers you really can save money.

To help, use comparison car insurance sites such as uSwitch.com, Confused.com, Tescocompare.com or Comparethemarket.com.

Check out our Latest best car insurance deals too – our MoneyHighStreet weekly round-up of the latest best car insurance deals we can find.

There are various forms of car insurance fraud, of which ‘fronting’ is one.

This is when a parent is listed as the main driver on a car insurance policy when in fact the car is registered in the name of the young person.

As Mark Monteiro also comments ”Fronting’ is a serious fraud and penalties for being caught could be severe. If detected, insurers can refuse to pay out for any claims or can settle a third-party claim and recover the cost from the parent as the policyholder.

If the insurer declines a claim, the young driver could be treated as uninsured and could be fined heavily and receive six penalty points – resulting in an automatic ban for new drivers as well as setting them up for higher insurance costs in the future.’

It really is far better to try and save money on your car insurance and get the best deal to suit your needs.