Would You Lie to Drive Down Your Car Insurance Costs?

06-Aug-2010

New research shows that almost a third of women and half of men may have 'bent the truth' in their car insurance application to get cheaper cover.

The study, carried out by comparison site confused.com, reveals that a total of 38% of UK drivers have lied in order to lower the cost of their premium, and of this number, 65% are now scared that their fibs will invalidate their cover.  This report follows the news that insurance costs have risen by an astonishing 31% in the past year, and indeed, 71% of those who lied did so in order to save money.

So what sort of porkies are UK drivers telling?  Underestimating the annual mileage driven in the car comes top, with 14% of respondents admitting to this.  8% underestimated the value of their car, and 5% of those surveyed admitted to adding a driver onto the policy who is never likely to actually drive the insured car.  

This is a common tactic among younger or more inexperienced drivers, usually involving the younger driver taking out the insurance in a parent's name and then becoming a named driver on the policy themselves.  Unfortunately for this 5%, insurers are now wise to the trick and drivers could see their insurance cover voided if they are found out.

Will Thomas, head of motor says "When it comes to motor insurance, lying really doesn't pay. By failing to tell the insurance provider your true circumstances you are risking invalidating your cover entirely, which ultimately means you are uninsured.

"Whilst it's easy to think you will never be caught out, insurance companies are getting savvier, particularly in these hard financial times, and lying is a type of fraud.  Having your cover invalidated not only has ramifications for you and the repair of your car, but also for any other driver involved in the incident - there is no limit to the costs that may be incurred in the event of an injury."

Here are three legitimate ways of saving money on your car insurance.

Security measures - Make sure that your car is equipped with security features such as a wheel lock and functional alarm, as this will greatly reduce the chances of the car being stolen and therefore bring down the cost of your cover.

Pass Plus - This is an extra training course aimed mainly at new drivers, although anyone can take it.  Designed by the Driving Standards Agency, it includes modules for motorway driving, night driving and bad weather driving and passing this could reduce your cover by up to 30%.

Get a smaller car - If you are an inexperienced driver, the costs of being insured on a large or powerful car are going to be disproportionately high. This is due to the fact that statistically, you are far more likely to be involved in an accident.  Consider downgrading until you have a few years' worth of driving experience and have built up a no-claims bonus.

Find a great deal on your car insurance here.