Car Insurance News from Be Wiser

Car insurance firms are rejecting around a thousand claims a year because they say motorists are lying in an effort to cut policy costs.

‘Fronting’ happens when a young person buys and registers a car in their own name, but the insurer is falsely told that a parent is the main driver.

A recent survey has uncovered that some 60% of parents do, or would consider, fronting on their child’s car insurance in order to benefit from a reduction in insurance costs, jeopardising both their own cover and their child’s access to future insurance policies.

It is thought that the insurance industry will introduce more stringent measures against fronting insurance policies in light of the results of the recent surveys.

Insurance companies are now clamping down and re-writing their insurance policies to close this potentially damaging loophole.

Fronting can save motorists hundreds of pounds on their premiums, but the consequences of being caught out can be detrimental, leaving the young driver liable for potentially thousands of pound of bills as well as criminal prosecution.

However with insurance policies in some areas commanding market premiums well in excess of £4,000 for young drivers, it’s no surprise parents are taking a big risk to save money- but is it a risk too far?