Do you tell the truth on your car insurance?
A new report has suggested that millions of Brits are economical with the truth when they apply for car insurance.
But although it may seem like a harmless fib, being less than honest about your situation when you take out insurance for your motor may mean that you don’t receive a penny if you need to claim.
Consumer Intelligence are a specialist market research group who have carried out an in-depth study into the car insurance market. They believe that as many as 2.4 million people in the UK haven’t told the truth on their motor policy.
What researchers found
During the study, researchers for Consumer Intelligence were told by 8% of participants – a whopping one in 12 – that they hadn’t been exactly truthful when they applied for their car insurance.
Around 9% of drivers did not give their real home address whilst marginally more – 10% – said they had dropped their true mileage. 14% of drivers withheld information about how many points they had on their licence or convictions they had notched up whilst 15% admitted not being honest about where their car was kept overnight.
The vast majority of those who had not been truthful when applying for their car insurance said they did it to try and save money on their premium. 60% of respondents cited this as the primary reasons.
The end cost of car insurance is influenced by a number of factors but your job title and how many miles you plan to do are significant factors. The decision about whether to use the vehicle for commercial or private use can also make a big difference to the quote.
Unfortunately for insurers, all of these factors are difficult to check but in some cases, the company only has themselves to blame.
In 10% of cases, individuals said they were ‘forced’ to provide inaccurate information because the computer systems weren’t flexible enough to record the details they wanted to give. This kind of problem is particularly common for both job and employment industry questions where the applicant has to select from a drop-down list which frequently isn’t as comprehensive as it should be.
Putting claims in jeopardy
No-one likes paying for insurance but the whole point is to ensure that if you need to claim, you won’t end up vastly out of pocket. But by being dishonest on your insurance application, there is a very big chance that if you need to put in a claim, it won’t get paid.
Consumer Intelligence expert Ian Hughes warned that not only could individuals find themselves having a big claim to pay out of their own pocket, they could also find it almost impossible to get insurance from any company in the future. You can find out more vehicle insurance information here.
You might save a few pounds in the short term but the risks involved in getting found out means it simply isn’t worth it. Insurers are very accurate in tracking down information which hasn’t been provided so if you need to claim and you haven’t been honest, the chances are you will get found out. You have been warned….