Parents ‘Front’ to Save Money on their Offspring’s Car Insurance

Save Money on their Offspring’s Car InsuranceThe soaring car insurance premiums have forced parents to ‘front’ and break the law by falsely declaring that they drive their cars more than their offspring’s. This practice is often used by parents who want to help their sons or daughters save on their car insurance rates. Since car insurance rates are normally high for new drivers and students, the increases have affected everyone and are forcing people to go against the law.
The Financial Ombudsman Services who deals with complaints on financial services companies have announced that they number of ‘fronting’ cases have reached almost 50 within a single month. According to their spokesperson, “The largest portion of fronting cases that we have received concern people who have intentionally misled car insurers because of the eye-watering increases that have forced them into being ‘savvy’’.
The cost for a comprehensive car insurance coverage has risen to 40 %. This is according to the data gathered by AA Car Insurance. More so, the most affected motorists are the new drivers. Motorists aged 17-22 are paying an average of £2,400. This shows an increased percentage of 64 % per year.
Intentionally misleading car insurance providers is a grave offense. If caught doing so, financial and legal implications may occur. Also, the car insurance companies have the option of refusing to pay out in case of an accident. If a car insurance provider will refuse to pay out, the driver may be treated as an uninsured motorist and this will gradually lead to more grave and serious complications.
On another note, a recent market analyst report has come out saying that car insurance companies could do more to make policy-holders more aware of the pertinent risks.
Meanwhile, car insurance companies are doing their ‘best’ to handle the issue of unreasonable car insurance costs that have plagued young drivers. This is in accordance with their ‘black box’ policies. These policies rely on the installation of the black box into a driver’s car. It uses a satellite technology that is capable of monitoring driving behavior like acceleration and braking. Hence, the better the vehicle is driven: The lower the cost of car insurance.
There are already a growing number of car insurance companies that offer a black box installation. Some of these companies are Co-op, InsureTheBox and Young Marmalade. Also, according to their records, there have been an estimated 90 % of motorists that have received cash-backs after proving that they are not dangerous drivers. Hence, instead of parents fronting for their grown-up children, installing a black box can prove to be more effective than breaking the law.

 
  • Recent Posts

  • Useful Links

    Do you need budget motor insurance? Find discounted policies and the best rates around at Cheap Car Insurance. Buy car insurance online in less than 3 minutes!