Young drivers telematics insurance news
06/01/2011
Bogus insurer jailed
Before young drivers telematics insurance became available on the UK market, young drivers often found themselves priced out of the market. Unfortunately, this fact led to some aspiring motorists being targeted by criminals, as amply demonstrated this week by the case of a Bradford man who has been jailed for 14 months for selling bogus motor cover.
Well aware that many "high risk" drivers find it almost impossible to pay for cover, the fraudster ran a so-called car insurance company called Castlemire, which, pre young driver's telematics insurance watershed, promised to sell drivers the cheapest cover.
However, last week the 30-year-old man from Bradford was convicted at Leeds Crown Court for Fraudulent Trading (Companies Act) and Possession of Articles For Use in Fraud.
A policeman involved in the fraud investigation commented, "By selling false insurance fraud in this manner he both deceived drivers and also made them unknowingly and unwittingly commit crime by driving without insurance.
"If any of those drivers had been involved in accidents the other parties would have been at serious jeopardy of recovering their losses so this was a scam which could have left many victims."
Indeed, it is estimated that as many as one in twenty drivers is on the road without cover. Industry experts hope that cost-effective schemes such as young drivers telematics insurance will lead to a reduction in the numbers of uninsured drivers.
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