One in six (17%) younger drivers admit to being on a ‘fronted’ coverage, which is illegitimate, in keeping with analysis by United Kingdom insurer Aviva.
Fronting is a type of insurance coverage fraud the place the younger driver is listed as a named driver on their dad and mom’ coverage, regardless of being the primary driver of the automotive.
The analysis involving greater than 2,000 younger drivers (aged 17-25) confirmed that while most younger drivers are trustworthy after they apply for insurance coverage, simply over one-third (35%) thought that “mendacity on my automotive insurance coverage utility is a victimless crime.”
“Fronting is a severe situation that not solely constitutes insurance coverage fraud but additionally places younger drivers at important danger,” stated Katriona Cunningham, underwriting fraud lead at Aviva.
“Whereas it might be tempting for a couple of younger drivers to attempt to be intelligent with the reality, it’s essential that they perceive the results of driving with out ample insurance coverage.”
Simply half (51%) of younger drivers realised they may face a driving ban for driving with out ample insurance coverage, whereas 45% understood that their automotive may also be seized by the police consequently. Just one-third (35%) knew that they could possibly be compelled to pay a nice.
In keeping with the insurer, it issues as a result of insurance coverage premiums are decided by the chance profile of the primary driver, and thus insurers have to know who that individual is. Misrepresenting particulars concerning the driver’s age, claims historical past, and different information in addition to driving on a fronted coverage, can result in the coverage being invalidated, as these actions breach the coverage phrases and circumstances and are thought-about each fraudulent and unlawful.
Matters
Fraud
Personal Auto
Was this text priceless?
Listed here are extra articles you might take pleasure in.
Desirous about Fraud?
Get automated alerts for this subject.
