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Fronting on bike insurance 'is a bad idea'
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Written by Fran Newton, 14/07/09
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Bike insurance customers have been warned against the pitfalls of fronting.
Customers of bike insurance have been advised against using a technique called fronting to make their policies cheaper.
Financial expert Lisa Bachelor writes in the Guardian that there has been an increase in the practice, which sees policy holders lying when divulging the rider that most uses the vehicle being insured to lower premiums.
She said that many people do not realise fronting is a criminal activity, a misconception which had not been helped by the presenters of the Top Gear TV show endorsing the practice.
A report due to be released by the Association of British Insurers (ABI) is expected to state that there has been a 30 per cent rise in motorists lying to brokers to ensure cheaper policies.
Nick Starling, the ABI's director of general insurance and health, said that brokers are wising up to car and bike insurance customers' tricks.
He said: "Through closer scrutiny of proposal forms and claims, as well as the exchange of information through industry-wide databases, the net is tightening on the cheats."
Meanwhile, the British Insurance Brokers' Association has urged motorists to keep up with their car and bike insurance payments during the credit crunch.
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