Honesty is the Only Policy - Fronting is Fraud

Confused.com reminds homeowners of the importance of being truthful when taking out insurance.

Cardiff, UK (PRWEB) May 20, 2009 -- The recent reports of MP Andrew George's expenses claims (which allegedly include a home insurance (http://www.confused.com/home-insurance) policy in his daughter's name) is a warning to all homeowners who are tempted to engage in risky 'fronting' behavior, where incorrect names are put on polices. Whilst it is unlikely Andrew George did this to benefit from cheaper premiums the consequences of 'fronting' are highlighted below.

Darren Black, Head of House Insurance (http://www.confused.com/home-insurance), said:

"The practice where someone else acts as the alleged policyholder is called 'fronting' and is classed as insurance fraud. If it is discovered that 'fronting' has taken place, policyholders run the risk of invalidating their entire policy.

"Premiums are based on the risk customers have declared to be true at the point of sale. Once they have entered into the insurance contract, they are accepting everything provided in the application to be true. If it is later discovered that the information provided was not an accurate or true representation of their insurance needs, the provider has every right to decline all subsequent claims and terminate the agreement the customer has with them. In some cases it may result in prosecution

"There are around 300,000 second homes across the country and insuring them is not difficult. There is simply no need to put the policy in somebody else's name and run the risk of invalidating the insurance.

"Honesty is the only policy when it comes to home insurance. Fronting is fraud and those participating in such an activity are showing some front, in more ways than one."

For further information please contact:

Darren Black, Confused.com: 07976 557310

Press office, Confused.com: 02920 434 398

Notes to editors

About Confused.com:

Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home and contents insurance (http://www.confused.com/home-insurance), travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.

Confused.com has a panel of 60 home insurance providers and could save customers over £180* on their annual home insurance policy.

Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com's service is based on the most up-to-date information provided by UK suppliers and industry regulators.

Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.

* 24% of customers who received a home insurance quote in the first quarter of 2009 and provided a best alternative price saved over £180.74

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