Brits Willing to Mislead Car Insurance Companies

What would you do to guarantee a payout from your car insurance provider following an insured event? Would you be willing to stretch the truth, withhold information or cover up a moment of carelessness? According to a new survey it seems that 12 million Brits would.

Research by a comparison website found that around 36 per cent of motorists would flout the law by making a fraudulent car insurance claim if it helped them to secure a payout. Only 18 per cent said they would volunteer information without being asked; while nearly one in ten motorists said they would never tell the truth. Another third would only be honest if they were pressed by an insurer.

Further analysis of the statistics reveals that 20-somethings are the most likely to lie with 15 per cent willing to cover up their own carelessness compared to just six per cent of those in their 50s. Women are more honest than men as 33 per cent would be upfront with their insurer compared to just 28 per cent of men. Meanwhile, it is those in the North East and Yorkshire that are the most dishonest with 14 per cent saying they would never tell the truth compared to just two per cent of motorists in East Anglia.

The statistics may seem surprising but perhaps they are indicative of the times. In the midst of a global economic crisis, most of us are willing to cut corners and go that extra mile to save cash wherever possible. It seems this train of thought even extends to being dishonest.

Is it worth telling a lie for a car insurance payout?

On the surface it seems like a victimless crime to tell a white lie to an insurance company in order to ensure a payout. One of the most common acts of fraud is to claim the vehicle was secured (locked and with the alarm on) when a theft took place – even though it wasn’t.

However, lying to an insurer is against the law. Claims that are paid out to drivers who are dishonest often result in honest drivers missing out and cause the cost of future car insurance premiums to go up.

Furthermore those that flout the law are taking a considerable risk. If your insurer finds out that you have not been completely honest then it could backfire – not only will they refuse to pay out on an existing claim but they may not offer you insurance going forward. Once an act of fraud has been committed with one insurance company, finding a good deal elsewhere may prove more difficult.

Honesty is best for your car insurance policy

Motorists are urged to be straight-laced with their car insurance providers as soon as they take their policies out. This means telling the truth about your circumstances and not looking for short cuts to secure a cheaper deal.

For example, many drivers claim to have enhanced security on their cars to earn discounts. In fact insurers only offer discounts for recommended security systems – the Thatcham car alarms proving particularly popular. So be frank with your insurer about the level of security you have in place. Also don’t claim to park your car in a garage overnight if you actually leave it on the street – if your car is stolen on the street your insurer will want to know why it wasn’t in the garage as you claimed it would be on your policy.

Insurers determine their premiums based on risk factors. The less risk you pose, the cheaper your car insurance should be. So telling a white lie here or there to earn a cheaper premium may offer savings in the short-term but it will backfire should a claim be necessary – and really, what is the point in paying for a car insurance policy that ultimately proves worthless?

If you can’t afford to fit the best security devices to your car, there are still ways to save money. For example, you could raise your voluntary excess – the amount you pay out in the event of a claim – or pay your premiums annually to cut out monthly interest charges. Make sure you’re only paying for the terms of cover that you actually use – don’t pay for business use for example, if you only use your car for commuting and social use.

Finally, make sure you’re shopping around at least once a year for car insurance. Accepting renewal quotes will mean you miss out on incentives that are offered exclusively to new customers and that are usually available online only.