Car insurance WARNING: Mistakes that could leave YOU without valid cover
HUNDREDS of thousands of motorists could be risking driving without valid cover, landing huge fines and even a criminal record by making some simple mistakes.
Car insurance is designed to protect you while on the road and the way the premium is calculated is based on a number of factors.
Premiums can range from a couple of hundred pounds a year to thousands every year and will protect you in the event of an accident or if you need to make a claim.
A number of simple mistakes on the application form could result in motorists driving illegally and risking landing some severe punishments.
According to the Association of British Insurers (ABI), there are three main ways in which drivers are trying to trick the system to land a cheaper premium.
One of the main offences is ‘fronting’ which is the process in which a driver puts someone else as the main driver on their premium to make it cheaper.
Usually, it is done by a parent who puts themselves as the main driver on their child’s first premium. It is, however, a form of insurance fraud.
One of the other offences motorists are making is by leaving out previous claims to unclaimed convictions which could leave them without valid cover.
The other issue is by putting a different postcode to the one they are living at or based can also result in an invalidation.
Mark Allen, the ABI’s Fraud and Financial Crime Manager, said to the MEN: “Insurers recognise that innocent mistakes and oversights happen.
“But anyone lying to get cheaper motor insurance, or tempted by cheap insurance offers without first checking that they are genuine, risks driving illegally.
The consequences include getting a criminal record and a massive financial headache if found to be at fault for a crash.
“The risks are just not worth it – especially when you can shop around for the right policy at the lowest price.”
News source: Express