Thousand of parents 'unwittingly' commit car insurance fraud

Posted :16-10-2007

Many thousands of parents and grandparents who have helped their child or grandchild buy a car and has it insured in their own name may be committing car insurance fraud by doing so, a new study has revealed.

Research by Zurich has indicated that 19 per cent believe the vehicle should be insured in their name as they own it.

And 68 per cent of those who have insured the car in their own name admitted to doing so to reduce car insurance premiums due to more experienced drivers tending to pay less than their younger counterparts.

Some 57 per cent of those who have helped a child or grandchild to purchase a vehicle stated that they do not realise that insuring the car in their own name constitutes fraud.

Scott Clayton, claims fraud and investigations manager at Zurich insurance, commented: "An insurer would be within their rights to decline a claim or recover any third party costs from the child or parent and grandparents themselves."

It was recently reported in the Wigan News that the revised version of the Highway Code was identified as being important for all road-users by a member of a road safety forum.


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