1 in 5 motorists commit car insurance fraud

1 in 5 motorists commit car insurance fraud
By Lezanne Janse van Rensburg, 5th March 2010
20% of UK motorists are misleading their car insurance companies via the act of "fronting", according to research by the Motor Insurer's Bureau (MIB) and insurer Aviva.
Research shows there has been a worrying upwards trend in fronting within the car insurance industry, which could cost policyholders very dearly. But even more concerning is the fact that very few motorists understand what fronting is and what it could lead to.
Fronting is when a person, other than the main driver, is declared as the primary policy holder. A common case of fronting is when a parent declares him- or herself as the main driver of the vehicle when, in actual fact, their child is the main driver. This is done for the sole purpose of cutting down on their car insurance premiums.
Although the act of fronting is regarded as fraudulent, motorists seem to be in the dark about the seriousness of the offence. According to MIB's survey, only 30% of motorists fully understood what fronting means.
10% of those surveyed thought that fronting was a legitimate way of reducing their insurance premiums.
10% of those surveyed thought that fronting was a legitimate way of reducing their insurance premiums. This means that 1 in 10 motorists are unintentionally committing insurance fraud.
Another 35% of policy holders said that fronting is just another loophole in the legal system. However, MIB chief executive, Ashton West, is warning drivers that reducing their insurance premiums by means of fronting "simply isn't worth the risk".
West added: "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