As per the Association of British Insurers (ABI), the insurance claims would become invalid if the motorists intentionally mislead a car insurance provider about the policy details since thousands of motorists are providing false information in order to receive cheaper premiums.
Nick Starling, the ABI's director of general insurance stated that trying to mislead the insurer is a false economy and if people are involved with an accident, they may find themselves subject to crippling bills. He said that it could also be difficult to get insurance in the future.
Meanwhile, some 53 per cent of respondents to an ABI survey thought it was right to name an older, lower-risk driver as the main policyholder. But, the body reminded consumers the process is called "fronting" and is illegal.
Since new legislation will be rolled out stating these vehicles must be covered under a policy, people who have stored cars that are not in use will have to look for a car insurance quote for them in the future.
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other road vehicles.
Its primary use is to provide protection against physical damage resulting from traffic collisions and against liability that could also arise there from.
