Car insurance: Cheats 'are putting cover at risk'

Wednesday, 24 December 2008

An increasing number of people are potentially invalidating their car insurance by cheating to get a better deal, it has been claimed.

The Association of British Insurers revealed providers are discovering more cases where customers have lied - or failed to disclose all the required information - in order to get cheaper premiums.

One common deception cited is 'fronting' - which involves a parent naming their son or daughter as an occasional car user on a motor insurance policy, when they are actually the main driver.

The ABI also said an increasing number of vehicle owners appeared to be failing to disclose previous motoring convictions.

Director of general insurance and health Nick Starling warned: "Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences."

He stated: "Honesty is the only policy."

Last month, ABI called on the government and road safety groups to work with it in order to cut the number of whiplash-related car insurance claims.

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