Markerstudy Group reposted this
We're highlighting to drivers that a popular car insurance 'hack' known as #Fronting - which is often seen as an innocent way to make car insurance cheaper - is actually #InsuranceFraud and has massive consequences! Shelley Comb, Intelligence & Investigations Manager at the IFB, said: “Fronting on car insurance is surprisingly common and because many people don’t realise it’s illegal, countless young people and their parents are implicating themselves in insurance fraud and uninsured driving, which has devastating consequences. “This is why as part of our Fraud Cons campaign we’re urging the public to avoid fronting. You should only be a named driver if you’re not the main user of the vehicle. If you’re unsure who the policyholder should be, then we recommend you speak to your insurer for advice first.” Find out how fronting on car insurance works and our tips to legitimately reduce the cost of car cover at https://ow.ly/xgJo50SXntS
Great work raising awareness of this new so called "hack". We hope people take notice and realise the consequences of committing this type of fraud.
To be fair lots of young people struggle to get insured due to the high price of insurance. Maybe the industry should be taking a look at how they can help rather than pushing some young people into doing things like this.
Fraud Prevention & Risk Management Manager | Fraud Strategy & Operations | Financial Crime & Cyber Fraud | | MBA | SAP | SQL | Power BI | ACFE member
2moExcellent article that opens our eyes to a possible fraud trend that has not yet been detected. In Colombia, if you are the policyholder of motor insurance, the insurance coverage generally applies to anyone who drives the vehicle with your permission, including your children. This means that if one of your children drives the vehicle and has an accident, the insurance should cover the damages, as long as the driver is authorized and meets the policy requirements, such as having a valid driver's license. The value of the motor insurance premium is calculated based on several factors, including the age of the driver. A fifty-seven-year-old person would generally pay a lower premium, as they are considered to have more experience and a lower risk of accidents. On the other hand, a twenty-five-year-old driver might pay a higher premium due to their lesser experience and higher statistical probability of being involved in accidents. Other influencing factors include driving history, type of vehicle, place of residence, and use of the vehicle. This trend is important to take into account for insurance companies where it is accepted that the policyholder is different from the owner of the vehicle.