Thousands trying to cut corners to save on car insurance
From lying on applications, to going through 'ghost' brokers, cutting corners will only cost you more.
The Association of British Insurers (ABI) has warned that thousands of drivers are paying a big price by cutting corners when buying their car insurance.
The trade body revealed that over 4,000 fraudulent motor insurance applications are being uncovered every week, with a whopping 212,000 attempted dodgy car insurance applications found in 2014, up by nearly a fifth (18%) on 2013.
Failing to declare unspent convictions or claims and giving a false address at a postcode in a lower risk area were common tricks that insurers exposed.
Parents insuring a car in their name which is mainly driven by their son or daughter, known as ‘fronting’, is also a regular issue. Even though it’s often well-intentioned, fronting can get you and your child in serious trouble, particularly if you ever have to make a claim. As it’s considered as fraud, you’ll get a criminal record, not to mention an extremely hard time getting a decent car insurance quote in future.
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Ghost broking
The ABI also warned motorists not to be duped by 'ghost' brokers, who may tempt you with the promises of much cheaper insurance.
‘Ghost broking’ scams involve illegal insurance advisers selling bogus motor insurance policies. This leaves innocent motorists driving illegally without motor insurance, facing prosecution and having their vehicle seized and crushed.
Fraudsters may buy policies from legitimate insurers using false information. They'll then doctor them and sell them on to customers to make them look authentic. Others design fake policy documents to look like they’ve been issued for legitimate insurance companies, created and sold on.
If you’re found to be driving illegally, you’ll be issued with a fixed notice penalty of £300 and it’ll cost you £150 to get your car back from the pound.
The Insurance Fraud Bureau is currently investigating 26 cases of ghost broking fraud.
Get the best value on your car insurance
There are plenty of simple ways to cut the cost of your car insurance that don't involve breaking the law, from shopping around and improving the safety of your vehicle, to changing the excess on your policy.
For a full guide, check out Ways to cut your car insurance.
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