Warning to parents over car insurance frauds
The car insurance frauds have increased in the recent past. According to a research done by website Uswitch.com, it is now known that there has been a 30% increase in such cases. The rise is because the parents are unaware that when they take a car on their child’s name, the insurance policy too should be on their name. What parents do is that they get the car and take up the policy on their own name so that they can save a lot of money. The younger drivers are considered to be riskier and thus have to pay more for their car insurance policies.
This practice is known as fronting. Also, in the recent years, there has been an increase in the age range of the second member being insured on their parents’ policy. The age difference went up from 25 to 31. Recession has its after effects and this is one of them. Due to the market conditions people are not able to afford car insurance. Kids drive their parents’ cars and hang up with it for more number of years just to save money on their policies.
Older parents are able to make substantial amount of savings by taking up such policies. The parents should not take up such a step that can be counted as a car insurance fraud and instead compare car insurance quotes and get an insurance policy for their kids. This is a soft fraud but should still not be done. The financial conditions of a person thus have a direct effect on different aspects of his life including the insurance policies he takes up. As the insurance premiums have increased, people are finding ways to cut costs that lead them to commit such frauds. You can compare the policies before buying them so that you are able to save money and not indulge in such practices.
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