A new study reported by the Nottingham post has uncovered the dangers of lying to your insurance company when completing your application.
In a bid to save a few quid or potentially save face, what may seem like a little white lie that no one will find out about, could actually get you in trouble and could even result in a criminal case being brought up against you.
Staggeringly, the study uncovered that an astonishing 84% of people surveyed admitted that they had knowingly lied on their insurance application to keep the cost down.
Where most people have the mind-set that it doesn’t matter as they won’t have to make a claim so won’t be found out; what if you do have to make a claim? What if that claim then isn’t valid because your application wasn’t correctly filled out?
So what are people being dishonest about?
The study found that the top five lies told when filling out an insurance application are:
- The purpose of the car (social, commuting, business)
- The annual estimated mileage
- Where the vehicle is kept overnight
- Vehicle modifications
- Any previous insurance accidents/ claims
What is the danger of lying on my insurance application?
When it comes to your insurance, bending the truth or telling a little white lie could actually be detrimental to your claims process should you need to make a claim. If you have to make a claim, and the insurer discovers that you haven’t been honest in your application, they are within their rights to void the policy.
What if, for example, you tell a fib on your application in order to save £40.00? You then have an accident and the claim amounts to over £4,000 but your insurance company won’t uphold the claim because you didn’t tell the truth. This would be a mortifying amount to have to find or take out of your savings wouldn’t it? I know this is hypothetical and somewhat exaggerated, however, it could happen!
Not only could your claim be void, but you could end up in court with huge fines and a criminal conviction hanging over you.
What about fronting?
Perhaps the biggest lie that insurance companies see is ‘fronting’. This is where a parent claims that they are the main driver of the vehicle and their child is an additional driver, when in fact, this is really the other way around.
So what do I do?
The best and only thing that should and can be done is to be entirely honest on your insurance application. Where a saving in the short term may be beneficial, a lie really could be detrimental and expensive in the long term.