Approximately four thousand fraudulent car insurance claims are being discovered by insurance firms on a weekly basis. In this article Convicted Insurance UK look at the five most common lies consumers tell on car insurance application forms.

It appears that lying to your insurance provider is quite common practise in order to keep premiums as low as possible. However, insurance companies are cracking down on what many people do not realise is a form of insurance fraud.

In 2014, firms have revealed that there were over 212,000 insurance applications where the applicant lied or was not 100% honest with the information provided. The Association of British Insurers say that this is an increase of around 18% since 2013.

So what are the most common lies and mistruths told on insurance applications and are you guilty of any of them yourself?

 

1. Not providing details of motoring offences when required by law to do so

If you have been convicted of a motoring offence it is important that you disclose this information on any insurance application, unless the conviction is spent and you are no longer required to.

Having endorsements and penalty points on your driver’s license can increase your car insurance premiums drastically but it’s a criminal offence to lie about your convictions in order to keep your car insurance premiums down. We suggest that you contact a specialist broker that deals with insurance for convicted drivers who will be able to find the cheapest policy available.

If you are looking for convicted driver insurance, complete the form on our quote page and we will provide you with a host of quotes from the market so that you can compare them and decide which policy best suits your needs.
 

2. Naming a parent as the main driver so the son/daughter pays a lower premium

In the insurance industry this is known as “fronting” and quite a common a form of insurance fraud. It’s no secret that young and inexperienced drivers pay much more for their insurance policy than older more experienced drivers.

Fronting is the term used to describe cases where a young driver takes out an insurance policy and names a more experienced driver (usually a parent) as the main driver in order to reduce premiums.

This would be perfectly fine and legal if the parent was in fact the main driver of the vehicle, but often this is not the case and the only purpose of them being named on the policy is to reduce the hefty premium that the young person would pay if they were the named main driver themself.

If the insurance company investigate and find that you have comitted insurance fraud you could find yourself with a whole host of problems. Your insurance could even be voided and you could be convicted for driving without insurance.

Paying high car insurance premiums is often a struggle for young drivers but they will be paying inflated premiums for much longer if caught lying to their insurance company.Young drivers’ premiums often decrease after they have gained experience.  However, a driving conviction means that you will be paying for convicted driver insurance for several years.
 

3. Lying about your postcode

Most people know that insurance providers take your postcode into consideration when calculating your car insurance premium. Certain areas are deemed “safer” by insurance firms than others.

The likelihood that your car will be damaged or stolen and the number of accidents in the area you live in will have an affect on the cost of your insurance policy.

For many years people have tried to trick insurance firms into offering lower premiums by lying about their address on their insurance application. It’s quite common for people to use a friend’s address or the address of a family member to reduce the amount they pay.
 

4. Providing false details about your occupation

Many recent articles have been published explaining how much of an affect your job title and employment details can have on the cost of your car insurance.

If you have ever searched online for ways to reduce your car insurance premiums, you will surely have been told to try all variations of your job title to see which brings back the best price.

Doing this is perfectly legal as long as the occupation you select accurately describes your actual job role and you do not purposely provide false details in order to save money.
 

5. Where the car is kept overnight

We’re all familiar with the questions asked on car insurance applications so there’s no doubt that you have answered this several times in the past.

Where your car is kept overnight is one of the contributing factors when insurers calculate your premiums.

Many people assume that storing your car in the garage is the safest option and will therefore result in the lowest premium being returned. Stating that your car is kept garaged overnight is one of the most common lies on applications.

What most people fail to realise is that some insurers actually return higher premiums if you state that your car is kept in a garage as opposed to on a driveway. This is because there’s a chance that you may damage your car accidentally by driving it into or out of the garage and getting in and out of the vehicle.
 

We always advise that you are fully honest with your insurance provider. Any potential saving that could be made by will seem insignificant when compared to the consequences if you are found to have provided false information on your application. If you have an adverse driving history and need to find a convicted driver insurance policy we can help – simply fill out our quick and easy quote form and we will have our partners contact you direct with their best premiums.