Millions lie to save on car insurance

August 13, 2013 | By | In News

Up to 2.4 million drivers could be risking driving on an invalid car insurance policy due to misinformation given when looking for cover, according to research by Consumer Intelligence.

Around eight per cent of drivers admitted to giving incorrect details to insurance providers, with 60 per cent saying they did so in the hope of getting a cheaper quote.

20 per cent of drivers admitted they had made a mistake or did not know the answer to the wide range of questions insurers ask when determining the cost of cover.

A small percentage of drivers also claimed they lied to get some of the money they’d spent back on previous, more expensive premiums.

The most commonly told porkies related to the owner’s home address and their annual mileage – two of the most important factors in determining the cost of a policy.

With discounts often offered to those who park their car on a driveway or in a garage overnight, it is perhaps no surprise to find that 15 per cent of those surveyed lied about parking their cars on the street.

More worryingly, some 14 per cent of drivers failed to notify insurers of previous motoring convictions and penalty points on their licences.

However, motorists claim that they are often forced into giving the wrong information due to the systems used by insurers. Insurance risk is calculated using a policy holder’s occupation, though many customers find their profession is not represented in the plethora of menus and online forms on company websites.

Motorists are being warned that erroneous information could lead to the partial or complete invalidation of their car insurance policy, which could make it very difficult for them to get further cover in the future.

Ian Hughes of Consumer Intelligence said: “Many consumers are struggling financially and it is understandable that they would want to try and cut their bills wherever they can. However, if they do not provide the right information to insurers they are putting themselves at risk.

“If they make a claim they may find that the policy won’t pay out because the information they provided doesn’t add up.

“One of the key principles of insurance is ‘utmost good faith’. That isn’t just for insurers; it is really important that consumers play their part in this."

Picture: Fotolia

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