Parents cut car insurance 'claiming child as spouse'
www.moneynews.co.uk > Insurance > Parents cut car insurance 'claiming child as spouse'
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Parents cut car insurance 'claiming child as spouse'
Tue 23rd Feb 2010
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According to swiftcover.com, as many as 36,000 parents may be committing fraud by putting their child's name down on their policy, in an activity know as fronting.
The insurance provider added that when it contacted some of its customers over the issue, one in four of them claimed to have filled out the form incorrectly by mistake.
However, when they were given the revised insurance cost, they opted to leave the company for a different policy.
Robin Reames, claims director for swiftcover.com, said: "Fronting is not only illegal, it actually ends-up costing law-abiding motorists if they are involved in an accident with a fronted driver who is actually an uninsured driver."
At the start of the year, the insurance provider stated that insurance claims increased by 75 per cent due to the snowy weather.
Click here for more insurance news
Related News : Insurance |
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