Drivers warned against 'fronting'
9.10.2008
'Fronting' on car insurance polices could lead to higher costs later on, according to the Association of British Insurers (ABI).
Such tactics, which see younger drivers added to their parents' car insurance policies as named drivers when they are in fact the main car user, are fraudulent, Malcolm Tarling, specialist in general insurance for the ABI, claimed.
It is a "false economy", he warned, stating that although people may be saving money now, in the long-run they could end up having to pay more for cover.
Such practices can also have serious implications in the event of an accident, the expert asserted.
"If the insurer thinks you are, in fact, the main user when you have led them to believe that you are an occasional user, they could turn down a claim for damage and theft, and their insurance will be more expensive in the future," he commented.
Keith Lewis, from Zurich, recently told the Independent that students and their parents often "unwittingly" commit fronting, as the younger person often takes the car away and is therefore the main driver.
Such tactics, which see younger drivers added to their parents' car insurance policies as named drivers when they are in fact the main car user, are fraudulent, Malcolm Tarling, specialist in general insurance for the ABI, claimed.
It is a "false economy", he warned, stating that although people may be saving money now, in the long-run they could end up having to pay more for cover.
Such practices can also have serious implications in the event of an accident, the expert asserted.
"If the insurer thinks you are, in fact, the main user when you have led them to believe that you are an occasional user, they could turn down a claim for damage and theft, and their insurance will be more expensive in the future," he commented.
Keith Lewis, from Zurich, recently told the Independent that students and their parents often "unwittingly" commit fronting, as the younger person often takes the car away and is therefore the main driver.