Is your car your pride and joy, or are you ready for a change? Let us know and you could win a £300 John Lewis voucher | No thanks

Credit crunch 'could lead to car insurance fraud'

Tue, 11 Nov 2008
The credit crunch could see a rise in the type of car insurance fraud known as fronting, esure has claimed.

According to the company, this practice involves a parent obtaining cover for a vehicle which is primarily, or solely, used by one of their children.

People do this in order to qualify for cheaper premiums.

With a fronted policy, the experienced motorist claims they are the main driver and the vehicle concerned is based at their address, when this is not true.

However, esure has warned motorists who do this could be making a costly mistake.

Mike Pickard from the company explained: "If detected insurers could treat the policy as invalid."

He concluded: "Honesty is the best policy when it comes to car insurance."

In other news, esure has reported more than 26 million road users in the UK could be putting themselves and other motorists at risk because they use headlights incorrectly.

If you want to know how to find the best deal for your car insurance, finance or warranty visit our car insurance calculator.
ADNFCR-1081-ID-18870329-ADNFCR

Comments

Add a comment

 

Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £8,930.17

Total cost of credit £1,430.17

£186.05

48 monthly payments

Apply now

Representative example

Borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96.

CarFinance 247 Limited is acting as an independent credit broker

Universal Square, Devonshire Street North, Manchester, M12 6JH