One in ten people lie to car insurers

Considering the financial annoyance that is car insurance, it is probably not surprising that a new survey sponsored by research company uSwitch has revealed that around one in ten people have lied to car insurance companies in order to lower their premium costs.

According to the results of the survey, consumers often try and bend the truth on what they consider to be minor details such as age, address, and whether the car is usually parked overnight. Moreover, 3% of those surveyed revealed that they have even lied about whether they have received warnings or bans for drink-driving and speeding.

It is important to realise that this is a serious issue and if you choose to lie to get cheaper cover, it could invalidate your policy. Even though purchasing car insurance may be, in the words of Aron Thompson, head of insurance at uSwitch, a "grudge purchase," it is simply not worth the hassle of being caught.

Furthermore, not only is it likely to result in repercussions for yourself, it is certainly going to put others at a great disadvantage. According to the Association of British Insurers, those who are not genuinely insured add an average of £30 a year to the premiums of those motorists who have paid as much as they owe. In fact, uninsured drivers ultimately cost the insurance industry millions of pounds and it is the consumers that end up suffering the effects of this, as it means higher premiums for everyone.

Not only that but should victims suffer terrible injuries in car crashes, it is often a very difficult and slow procedure trying to settle a claim with an uninsured driver. For this reason, a fund was set up by the Motor Insurance Bureau to compensate victims of accidents where the drivers responsible were insured. They paid over £500m last year and the fund is entirely financed by a tax on all UK insurance companies.

Therefore, whilst lying to insurers might be a tempting and common activity, the losses will end up biting the dishonest consumer and damage the entire industry. If you are unsure of the terms of your policy or the definitions of the words used by the company, make sure you ask so that you avoid giving out incorrect information and putting yourself and others at risk.

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