The pitfalls of lying to your car insurer
According to recent statistics, as many as 1 in 10 drivers in the UK have lied to their car insurer to save on the cost of a potential rise in premiums. False information is most commonly given with regard to the driver’s age and address, or the location in which a car has been parked overnight. A small minority was found to have misled their car insurance company by failing to declare any speeding penalties or bans for drink-driving offences.
The Association of British Insurers has stated that the cost of these individuals to insured drivers is an average of £30 per person per year.
Motor Insurance companies are now investing in more sophisticated technology to prevent fraudulent information being used to reduce premium costs. This should also mean that the costs of dealing with those who do lie to their insurers should no longer have to cost the honest consumer quite so much. This software can analyse the patterns of claims made by certain individuals and help to cut back the current trend in fraudulent claims.
If an application for car insurance contains false information and this is discovered, the company has the right, which it usually exercises, to reject that claim. Depending on the severity of the lie, it can even result in the applicant being blacklisted by all motor insurance companies, thus making it impossible to legally drive a car on the roads.
The most obvious pitfall to giving false information is when a driver actually needs to make a claim. In the event of an accident, the first port of financial recovery is the car insurance company. If they discover false information has been knowingly given to reduce a policy’s premiums, they can refuse to make any payment whatsoever.
There is also a more serious side for the victims of car accidents. If someone is injured by a car driven by a driver with a suspect policy, the process of claiming, for them, can be very drawn out, causing added stress in what could already be a sensitive situation.
In a car accident, the details supplied when the applicant bought the policy are checked against his or her current circumstances and the circumstances of the claim itself. If a discrepancy is found, this also gives the insurer reason not to make any payout.
Most of the untruths uncovered have been told to try and reduce policy premiums. However, there are simple things that can be done to lower a policy’s costs. Fitting anti-theft devices, such as car alarms, steering and tyre locks, the displaying of a sticker that states the car is protected, tidying away anything that might be tempting to car thieves and parking the car in a sensible, secure area can all help to bring those costs down. Most insurers respond favourably when told of any measures that have been taken as a security precaution.
Uninsured or falsely insured drivers cost the motor and insurance trades millions of pounds each year. These costs are then passed on to honest consumers who pay the price in higher premiums.
These days it’s possible to get a quick online quote that’s competitive and tailored to your circumstances; Asda
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