Motorists warned of car insurance deception risks

Posted :11-05-2005

Motorists are risking invalidating their insurance by lying on their car insurance applications, according to a leading insurer.

One in ten drivers lie when applying for car insurance, new research from RAC Financial Services has found.

In addition, one in four drivers have driven without a valid MOT and nine per cent of motorists have got behind the wheel without insurance, a trend which is costing honest consumers hundreds of millions of pounds each year.

The most common application lie concerns where motorists keep their car, with many claiming that it is stored in a garage overnight to minimise costs.

Philip Hale, a spokesperson for RAC Financial Services, warned motorists not to lie on insurance applications, stating: "When you look at the bills they face, it's easy to understand why people feel pushed to reduce their car costs, but it's often a false economy.

"Many insurance policies will be invalid if the details given don't match the vehicle and minimal cover just means you're more likely to have to pay for repairs, or damage you cause."

Other mistruths include under-stating the value of the car and giving the wrong address, both to keep the costs of premiums to a minimum.

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