Five common car insurance fibs that could invalidate your cover
There were 449,000 dishonest insurance claims last year.
Hundreds of thousands of drivers had their car insurance claims refused in 2017 as they were found to be lying on their applications to try to get cheaper cover.
The most common lies including fibbing about the type of job they did, and their driving record and any past motor convictions. This is according to data from the Association of British Insurers for 2017, analysed by Go Compare.
Insurers might cancel drivers’ policies as well as refusing their claims, if they are found to be lying. They might even prosecute them for fraud.
Drivers have a duty to disclose all information when filling out their insurance forms and must answer all the questions truthfully.
Here are the top five most common lies.
1 How your car is used
How you use your car will determine how much you will be charged for your insurance premium. There are three ways that cars are usually used: for social, social and community and business use.
Those who only use their car for social occasions and don’t travel to and from work in it, generally pay less. Those who use their vehicle for both social and commuting purposes should make sure that they have included both uses on their application form.
Insurers normally charge a higher premium for cars that are used for both commuting and business purposes, because drivers are more likely to be on the road at the busiest times of the day.
Some parents list their children as additional drivers on their cars, as opposed to the main driver, in an attempt to get the cheaper cover.
Young drivers have to pay the most for their insurance, as statistically younger drivers are much more likely to be involved in accidents.
This practice is known as ‘fronting’ and is considered fraud by insurance companies. It might be tempting to help your son or daughter out, but the person who is the main driver of the car should always be listed as such.
3 Lying about occupation
The way you describe your employment to the insurer is also significant in the price of your premium. You also need to tell your insurer if, when and how your change job.
GPs are thought to be the most accident-prone profession in the UK, while car dealers are the least. Courier, car valets, painter, van drivers and plasterer were all some of the professions that made less claims on average.
4 Hiding past claims are damage to your car
You might not think that a scrape is important to mention in the insurance paperwork, but you must still inform the provider.
Any serious accidents should obviously be noted, but you should remember that you have to disclose everything, not just bigger accidents.
The amount of incidents that you have been involved in will impact on how much the insurer charges you.
5 Failing to declare penalty points and driving convictions
Deliberately not mentioning past driving convictions is fraudulent. Make sure you list everything, even if it seems minor. This includes things like driving a vehicle that needs repairing.
Drivers should also inform their insurer as soon as they are issued penalty points, rather than just waiting till their policy comes up for renewal.
Some drivers might assume they don’t have to declare minor issues or damage to their vehicles, but withholding information can lead to you losing more money in the long-run, or to you getting a fraud conviction.
Make sure instead that you find a car insurance policy that really works for you, and use a price comparison site like A Spokesman Said to read up on all the policies available before you decide which one to buy. This will save you stress and cash, and will mean you can drive knowing you have adequate cover if something goes wrong.
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When did you last switch your car insurance provider?
Last year 65% of customers didn't switch their car insurance to try and get a better deal.