Car Insurance - More Brits turning to insurance fraud during recession - 05/10/2009

Despite bearing an uncanny likeness to a crime fiction novel, the recession is causing British drivers to resort to despicable acts of false car insurance claims and providing false information on a policy as a bid to make ends meet.

According to a research by a price comparison website, more Brits are turning to the fraudulent move of “crash for cash” by staging accidents across Britain’s roads, while a number of others are lying on their applications about who will be the main driver of a vehicle.

The website reveals that the idea of staging a car accident for insurance money is catching the fantasy of many British drivers today.

In addition to this, many British drivers lie about the actual driver of cars, owing to the fact that they will have to pay less car insurance cover.

This act of lying about the real driver of the car is done in the case of young drivers, negligent drivers and drivers with a bad driving record. Known as fronting, it is an act that lets you pay less, in case you present a clean and experienced driver instead of a young, inexperienced or bad driver.

Fronting is a false economy and if caught, a claim can become void if the driver other than the one mentioned in the terms is found driving in case of an accident.

Such car insurance claims are outright rejected and the buyers are blacklisted on the CIFAS (Credit Industry Fraud Avoidance System).

Previous news revealed that those caught filing a fraudulent claim on their insurance or lying on their policies, may find themselves struggling to seek other types of insurance later on.

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