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Lying to reduce premiums
(10-07-07) - Almost one in 10 people lie on their car insurance applications in order to reduce high premiums new research suggests.
Although lying about personal and vehicle details can render your policy invalid, many people still lie about age, address and where their car will be parked overnight - the most common tales told.
A further three per cent of respondents admitted to lying about bans for drink driving and speeding. At the same time, the Association of British Insurers (ABI) told the BBC that uninsured drivers were pushing up the cost of car insurance premiums by around £30 a year, per policy.
This is because a fund set up by the Motor Insurance Bureau to compensate victims of uninsured drivers gets its funding from a tax on car insurance premiums. In 2006 this fund paid out £500 million.
Chris Eagle, BreakdownChoices.co.uk commercial manager, warned that although it might be tempting to lie to car insurance providers, the consequences could be costly. “Lying might reduce your premium, but if you need to make a claim and are found out, you could find that you’re not covered, and will have to pay to repair any damage yourself - on top of already having paid your insurance.
“The best way to reduce your premium costs is to shop around and compare policies. That way you can reduce your payments safe in the knowledge that you will be covered if you need to make a claim.”
