10th October 2008
The Association of British Insurers (ABI) has recently stated that qualified drivers who hide the truth from their car insurance providers in an attempt to reduce their car premium should stop performing such a practice.
General insurance expert Malcolm Tarling stated that however tempting it seems to cut the cost to get cheap car insurance the risk is not worth it, and the driver could end up worse off in the long run.
Such practices of getting cheaper car premiums include such things called buying a ‘fronting’ policy. This is when a young driver claims they only use a vehicle irregularly, leaving their parent to be the main driver. However, if the insurer discovers that this is a lie it could turn out to be a very expensive lie!
The reason why it could be so costly to fib is because if a driver were to make a claim but has misled the insurer, then the insurance company may decide not to pay out. This could result in the price being increased for the future.
Tarling stated: “If you think you are saving money now, it's false economy because you will be spending more for many years to come.”
Source : onlyfinance.com
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