Warning on invalid insurance policies sold through Aston Midshires

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A warning has been issued to any drivers who have car insurance policies with Aston Midshires after it was announced that the company is under investigation for selling invalid insurance policies.

Aston Midshires targeted young drivers in particular, offering competitive prices on insurance policies for new drivers and learner drivers. However there are fears that thousands of drivers on UK road could be driving without any form of insurance as the policies sold by Aston Midshires have been brought into question after 30 complaints were received from drivers who’d discovered their policies were not legitimate.

The Financial Services Authority, the police and Trading Standards are all reported to be carrying out investigations into the insurance provider. So far, the authorities have discovered that the company is linked to a foreign address, however Aston Midshires have most recently pulled down their website and also stopped answering phone calls.

When the authorities visited the building listed as the UK address for the insurance company in Leicestershire, the owners of the building said they had no record of the company ever operating from the address.

The consequences for drivers who have invalid policies with Aston Midshires is far reaching as not only are they not covered should they have an accident in their vehicle, but the consequences will affect the other drivers if they have the misfortune to be involved in an accident with a driver who doesn’t have valid insurance.

Women more likely to bend the truth when taking out car insurance

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Female drivers are more likely to bend the truth when applying for car insurance, according to recent research carried out by eCar.

The eInsurance Group which serves 280,000 insurance applications every month carried out research into the habits of both sexes when it comes to divulging information which could have an effect on their insurance policy. The insurance provider say they have noted an upturn in the number of female drivers avoiding the truth when taking out policies.

In May of this year, the provider revealed that 20% of their policies underwent fraud investigations. Out of those policies which were subsequently declined, 51% were made by women, while 49% were made by men.

The top untruths uncovered by the investigations included not fully disclosing convictions, of which 47% of women were guilty compared to 64% of male drivers. Giving misleading information regarding licence length was highlighted as a reason for revoking 68% of insurance policies for women drivers, and 32% of male drivers. 53% of female policy holders and 47% of male policy holders were caught out as a result of incorrectly stating the length of their no claims bonus.

Car insurance fraud has added 38% to the cost of all annual insurance policies over the last year, forcing 1.3 million drivers off the road as they can no longer afford the cost of their premiums.

The results have spurred eInsurance to start a new campaign, Truth or Dare, to encourage drivers to take a more truthful approach to their car insurance.

Parents warned against “fronting” on a child’s car insurance policy

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Parents are being warned against “fronting” as the main driver on a son or daughter’s car insurance policy to keep the cost of cover down.

Insurance companies are advising individuals who carry out this practice that they are invalidating the car insurance policy by giving incorrect information, and also committing insurance fraud.

A survey found that 35% of drivers saw “fronting” as a loophole by which to obtain cheap car insurance for a younger driver. The price of insurance for new drivers is notoriously expensive which is why some parents take the decision to place themselves as the first named driver on the policy, when in fact the vehicle is driven more frequently by their child.

However not only is this practice illegal, but by giving false information on an insurance policy, the cover is likely to be invalidated.

Police also warn that those caught without adequate insurance cover will face stiff penalties, and possibly even prosecution. Although many parents don’t realise they are committing an offence by naming themselves as the principal driver instead of their child, is how many of these problems arise.

Car insurance specialists have reported a lot of confusion amongst drivers in regards to giving accurate information on a car insurance policy. They hope drivers will heed this warning bringing an end to “fronting” on vehicle insurance policies.