UK drivers running insurance risks as phantom drivers

• More than two million UK motorists could be risking ‘fronting fraud’
• Over one million ‘phantom’ drivers are named on policies for cars they have never driven
• A worrying three per cent of car-less drivers have driven without any insurance in place
   

New figures released today by Privilege car insurance* have revealed that more than two million motorists (six per cent)** could be potentially jeopardising their insurance, by listing themselves as a main driver on the policy for someone else’s car when they are not, to help the real main driver cut costs.

The fraudulent practice is known as ”fronting” and usually happens when parents take out a policy in their own name in a bid to save their child money on their premium, because it is actually their child who is the main driver.  If this is proven to be the case, the penalties could include the cancellation of the policy with no premiums refunded, claims being refused and difficulty obtaining insurance in the future.

The research reveals evidence that there are a further one million (three per cent) *** phantom named drivers, who have been named on policies for a vehicle they have never even driven.

There is also an alarming level of confusion around what level of cover a driver has when they are behind the wheel of someone else’s car but are not named on the policy. One in five (21 per cent) car owners who drive regularly believe that they would be covered for damage to that car, perhaps unaware that the Driving Other Cars (DOC) extension cover does not pay for to damage to the vehicle they are driving itself. This means that they are unprepared for the costs of their repairs in the event of an accident.

A worrying three per cent of drivers who do not own a car admitted that they have driven other cars belonging to family and friends without being named on their policy, effectively meaning that they are driving completely uninsured.

Maria McCarthy, motoring journalist**** said: “We all love to get a great deal, and car insurance is no different. However, it is important for drivers to understand that although fronting may seem like a harmless attempt to save money, it is actually fraudulent activity which can result in financial penalties and being in an even worse position by having this on their record.”

McCarthy continues: “Being inadvertently uninsured is not an ideal situation for a driver to find themselves in, so Privilege’s advice would be to always be honest when purchasing car insurance and answering the questions. If anyone is unsure about what they are covered for, they can always speak to their provider and check before making any risky assumptions.”

Charlotte Fielding, head of car insurance at Privilege said: “Similarly, it is vital that drivers ensure that they know under what circumstances they can drive cars that they are not named on the policy for and understand the liability they are accepting by doing this. Having a comprehensive policy may mean that someone can drive other cars, although it should be noted that this is not automatically included in all policies, but it does not mean that the vehicle is covered on a comprehensive basis. Rather, the insurer will pay for any costs incurred by the third party only; leaving the driver liable for any costs to the vehicle they were driving.”

Notes to editors

• Research conducted among 2002 participants from 14th-17th April 2014, weighted to nationally representative criteria
• ** 101 respondents said that they were the main driver on two policies but only one was for their main car. This equates to five per cent of the overall sample and is equivalent to 2,541,194 people when extrapolated to the 2013 UK adult population of 50,371,000.
• *** 48 respondents said that they were a named driver on another policy but haven’t ever driven the car. This equates to three per cent of the overall sample and is equivalent to 1,535,116 people when extrapolated to the 2013 UK adult population of 50,371,000.
• **** Maria McCarthy, motoring journalist and author of The Girls' Car Handbook and The Girls' Guide to Losing your L Plates. Maria is a regular on BBC Breakfast news, Good Morning Britain, Sky, Radio 5 Live and has carried out more than 500 local and national radio interviews.

For further information please contact:

Chloe French

Media Relations Executive

chloe.french@directlinegroup.co.uk

01651 831 715

07770 640 865
 

Victoria Leyton/Tom Pavey-Smith

Lansons

0207 294 3602/0207 294 3606

privilege@lansons.com
 

Privilege

Privilege Insurance specialises in car insurance for safe drivers. It also offers home insurance and breakdown cover by phone or on-line.
 

Privilege general insurance policies are underwritten by UK Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
 

Privilege and U K Insurance Limited are both part of Direct Line Insurance Group plc.
 

Customers can find out more about Privilege’s products or get a quote by calling 0845 246 0515 or visiting www.privilege.co.uk