The Injury Lawyers, a UK legal firm, are reminding drivers that the trend for falsifying car insurance revealed recently by the Coop could not only lead to invalid insurance and prosecution, but also invalidate any claim for personal injury in the event of a Road Traffic Accident (RTA) such as whiplash.
The warning follows figures released by the Cooperative Insurance which revealed that 41 per cent of parents are illegally putting their names on their childrens’ car insurance in a practice known as ‘fronting’.
Car insurance fronting occurs when a higher risk driver such as a young person is added as the named driver on a car insurance policy when they are actually the main driver or owner of the vehicle.
While car insurance costs may be reduced the cover is invalidated in the event of a personal injury claim so the money is wasted anyway.
“What may seem like an attempt to save money can have real costs when needed.
“Falsely claimed insurance is invalid, which means where repairs or medical costs become involved, it can cost big money, says Mike Gibson of UK personal injury firm The Injury Lawyers.
“The issue is especially important when making a personal injury claim. Whiplash is a very common condition from road accidents, and treated fast can have its impact minimised.
“Whiplash injury compensation claims for injury also ensure that any expenses arising from an accident, not least time off work, can be properly provided for by the insurance company.
“However, if the insurance is invalid, then there will be nothing to cover the compensation claim for whiplash injury. This is especially important as if left undiagnosed, whiplash can become debilitating, leading to time off work for recovery and frequent hospital visits.”
It is a legal requirement to be properly insured so all drivers are protected on British roads.
In the event of a personal injury car accident compensation claim correct insurance is required to cover both drivers and other road users.
Figures released by Cooperative Insurance revealed that 41 per cent of parents were illegally fronting the kids car insurance despite knowing it is against the law.
Research by The Co-operative Insurance revealed:
41 per cent of parents are fronting motor insurance for the children
61 per cent would do it again in the future
33 per cent of parents know two other people who have fronted
57 per cent know that car insurance fronting is illegal
Parents believe they can save over £180 by fronting
If a driver is found to be fronting they may have all or part of their claim refused by the insurer and their policy cancelled. Car insurance fronting could even lead to prosecution for fraud which can lead to a criminal record.
The Coop research follows similar findings by studies by other car insurers, including the AA and Aviva, who have found that fronting is especially common where parents are trying to reduce car insurance premiums for their sons or daughters.
Chief Operating Officer at The Co-operative Financial Services Tim Franklin added:
“The view that motor insurance fronting is harmless and doesn’t hurt anyone could not be further from the truth.
“Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future.”
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