MIB and Aviva urge drivers to ensure they are adequately insured.
(PRWEB) February 23, 2010 -- New research from the Motor Insurers’ Bureau (MIB) and Aviva reveals that more than two-thirds (70%) of UK drivers do not understand what it means to ‘front’ a car insurance policy and of those that understand what fronting is, there are one in five who admit to misleading their insurer and committing this kind of car insurance fraud.
Insurance ‘Fronting’ occurs 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.
Well meaning parents may consider fronting an insurance policy to try and save money, but this is false economy |
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Ashton West, Chief Executive of MIB said, “There is a significant degree of confusion amongst drivers about the importance of giving accurate information about the main driver to an insurer. There is a need to help drivers understand and appreciate the importance of being adequately insured.”
The research also highlights confusion over responsibility for damages in the event of an accident. Under a valid insurance policy, the insurer will cover the policyholder’s liability for injury and property damage for any other parties involved and if the cover is comprehensive, the damage to the policyholder’s own vehicle. However, a third (31%) of drivers wrongly assume that they will be covered if the policy is ’fronted‘. In fact, where it is proven that a policy has been ‘fronted’, insurance companies can refuse to pay out damages to the “insured” vehicle and may look to recover third party claim costs from the policyholder or driver.
West continues, “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. There are a number of hints and advice about how to stay insured legitimately at askMID.com.”
Nigel Bartram, motoring strategist at Aviva added, “Young drivers remain the age group with the highest proportion of insurance claims, accidents and fatalities on our roads, and this fact is reflected in their motor insurance premiums. Well meaning parents may consider fronting an insurance policy to try and save money, but this is false economy as those that try to cheat the system by declaring false information will find that their insurance is invalid when they actually need to make a claim on their policy.
“When parents are fronting up a young driver’s policy it means the young driver is not fully declared and will not be able to accrue any no claims bonus of their own. It is important that insurers are covering the appropriate risk with the correct premium; otherwise this premium will have to be borne by other, honest customers.”
Aviva’s top tips for reducing premiums:
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[Via Legal / Law]
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