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Motorists cutting corners risk drivin...

ABI News Release

Wednesday, 19 January 2011 Ref: 02/11

Motorists cutting corners risk driving illegally warns the ABI

Thousands of motorists are putting their motor insurance cover at risk and driving illegally by
knowingly giving false information or failing to disclose important facts, such as motoring
convictions, according to survey findings published today (19 January) by the ABI. They face
not only a criminal conviction, but a lifetime of more expensive and harder to obtain
insurance, and difficulties in accessing other financial products, such as credit.

The number one temptation to get cheaper car insurance is for a parent to insure a vehicle in
their name as the main driver, with their son or daughter down as an occasional driver, when
in fact they are the main user – commonly known as ‘fronting’. Over a half of motorists
surveyed said they would not rule out doing this, despite the fact that it is fraud and could
invalidate their insurance and led to a criminal conviction.

ABI-commissioned research among 2,600 adults highlights the lengths some would go to get
cheaper motor insurance by trying to deceive insurers:

• Over half (53%) think it is acceptable or borderline behaviour for an older, lower-risk person
to insure a vehicle in their name when a younger higher-risk driver is the actual main driver.
• One in five drivers would not rule out exaggerating the number of years since they last
claimed.
• 12% might be tempted not to disclose relevant motoring convictions.
• One in ten would not rule out changing details, such as their age, address or occupation, in
order to get cheaper car insurance.

Nick Starling, the ABI’s Director of General Insurance and Health, said:

“Trying to deceive your insurer is a false economy that will cost you dear. Of course everyone
wants to get the best motor insurance deal, but being less than truthful is not the way to do
it. Not being honest with your insurer could lead not only to you driving illegally, but to
financially crippling bills if involved in an accident, harder to obtain and more expensive future
insurance, and difficulties in accessing other financial products”.

ABI’s tips for getting cheaper motor insurance legally are:

• Shop around as premium rates will vary between insurers. Comparison websites may also
be able to help. Insurance brokers can also assist, especially if you have a specialist need.
• If purchasing a car think about the insurance costs, as smaller lower-powered cars will be
cheaper to insure. This is especially important for young, newly-qualified drivers.
• Consider taking the Pass Plus post driving test course (passplus@dsa.gsi.gov.uk), especially
if you are a young driver.
• Fit an approved immobiliser, as this can often earn you a discount on the premium.
• Consider opting for a higher voluntary excess (the first part of each claim that you pay
yourself), as the higher the excess, the lower the premium.

- ENDS -

http://www.abi.org.uk/Media/Releases/2011/01/Motorists_cutting_corners_risk_driving_illegally_war... 28/02/2011
Association of British Insurers - Motorists cutting corners risk driving illegally warns the ABI Page 2 of 2

Notes

Notes for Editors

1. Enquiries to:
Liz Forster 020 7216 7444 (Mobile: 07717 578 586)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The survey of 2608 adults was conducted by YouGov between 15 and 20 December 2010.
3. The ABI is the voice of the UK’s insurance, investment and long-term savings industry. It
has over 300 members, which together account for around 90% of premiums in the UK
domestic market.
The ABI’s role is to:
- Be the voice of the UK insurance industry, leading debate and speaking up for insurers.
- Represent the UK insurance industry to government, regulators and policy makers in the
UK, EU and internationally, driving effective public policy and regulation.
- Advocate high standards of customer service within the industry and provide useful
information to the public about insurance.
- Promote the benefits of insurance to the government, regulators, policy makers and the
public.

The UK insurance industry is the third largest in the world and the largest in Europe. It is a
vital part of the UK economy, managing investments amounting to 24% of the UK’s net worth
and contributing the fourth highest corporation tax of any sector. Employing over 275,000
people in the UK alone, the insurance industry is also one of this country’s major exporters,
with a fifth of its net premium income coming from overseas business.
Insurance and businesses protect themselves against the everyday risks they face, enabling
people to own their own homes, travel overseas, provide for a financially secure future and
run businesses. Insurance underpins a healthy and prosperous society, enabling businesses
and individuals to thrive, safe in the knowledge that problems can be handled and risks
carefully managed. Every day, our members pay out £155 million in benefits to pensioners
and long-term savers as well as £58 million in general insurance claims.

4. An ISDN line is available for broadcasts.

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http://www.abi.org.uk/Media/Releases/2011/01/Motorists_cutting_corners_risk_driving_illegally_war... 28/02/2011