Car Insurance: Deceiving your provider 'could be costly'

Wednesday, 08 October 2008

Newly qualified drivers who are worried about the cost of car insurance should not even consider misleading their provider, the Association of British Insurers (ABI) has warned.

Commenting on 'fronting' - where a young person gets cover under a parent's policy by claiming they are only an occasional vehicle user when in fact they are the main driver - the group said lying to your provider is a risky practice.

General insurance expert with ABI Malcolm Tarling said trying to cut costs in the short term could be more expensive in the long run.

He stated if an insurer suspects it is being deceived it may refuse to pay out on a claim for damage or theft and then increase the cost of its premiums in the future.

"If you think you are saving money now, it's false economy because you will be spending more for many years to come," Mr Tarling claimed

The ABI is the body which represents the interests of the UK insurance industry.

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