Industry News
Many UK motorists lie on insurance proposal forms
10th July 2007
New research from online price comparison and switching website uSwitch.com reveals that 10% of drivers have provided inaccurate crucial information such as their age, address, no claims bonus, and previous driving convictions in an attempt to save money on the cost of their car.
Major findings of the research include:
• 6% of vehicles on UK roads are completely uninsured (Motor Insurance Bureau estimate), and a further 10% (YouGov data) of drivers lie to car insurance providers which can invalidate their policy.
• Over 750,000 drivers fail to declare convictions such as speeding, drink driving and bans.
• Over 1.5 million drivers intentionally lie about basic details such as age and address.
• 5% of people lie about where their car is parked at night.
• Three out of four people are fully aware that providing false information could invalidate their policy.
• If all of the drivers with potentially invalid policies had to pay for their insurance claims, it would cost them a combined £4.15 billion - four times the £1.04 billion cost of their insurance policies.
• More than 2.5 million motorists in the UK could find themselves with an invalid insurance policy by providing inaccurate information during the application process.
Aron Thompson, Head of Insurance at independent online price comparison and switching service, uSwitch.com, said: “With many consumers seeing car insurance as a grudge purchase, it’s no great surprise to see people either withhold or knowingly provide inaccurate, crucial information in order to get cheaper cover. To the consumer, this may seem like a little white lie to save money. In reality, it could end up teaching the driver a costly lesson, on average £1,636, as the provider is under no obligation to settle a claim based on a policy which is inaccurate.”
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