Would you lie to save on your monthly car insurance premium? We have written many blog posts on car insurance fraud and how this blue collar crime is increasing the car insurance premiums.
This most often focuses on fraudulent statements made at the time of making the car insurance claim.
These lies are usually related to disclosures of the following:
• Details of the driver at time of the accident
• Details of security features active during time of vehicle theft/ alarm systems etc
• Details of how the vehicle was lost or suffered damage
• Details of where the vehicle was parked, etc
These lies are most often motivated by fear that the accident claim could be rejected on account of the vehicle owner not complying with some of his obligations under the policy contract.
It is however also at the time of purchasing a car insurance policy that many vehicle owners resort to making untruthful statements/lies! It is important that we focus on the dangers of these fraudulent statements and warn consumers about the possible consequences.
Research in the UK on car insurance lies
Recent research in the UK has made available some shocking revelations:
• 38% of UK drivers have admitted lying to get a better premium.
• Men are more likely to be dishonest than the fairer sex, with nearly half admitting to fibbing to get cheaper cover.
What do they lie about?
• Drivers are most likely to lie about annual mileage (14%)
• Where they keep their car (8%)
• The value of the car (7%)
• Adding named drivers onto policies whom the owners suspect will never drive the car.
What motivates vehicle owners to lie when purchasing car insurance?
• 71% of those who lie on their car insurance (http://www.confused.com) applications say that they do it to save money
• 12% consider it worth the risk of having to pay out in the event of the accident to save on their premium.
Conclusion and advice
We would like to recognize and quote from Confused.com who made available these interesting research findings:
Will Thomas, head of motor at Confused.com, 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”
Perhaps keeping a clear conscience and acting with integrity in business dealings do count for more than a few rands in savings on your monthly car insurance premiums.
Do not tell the truth merely because you are afraid of your claim being rejected – tell the truth because it is the right and honourable thing to do!!
We would like to urge all vehicle owners to view the following: