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Lies People Tell to Decrease Their Insurance Premiums

By July 1, 2019 No Comments

Car insurance is a fact of life: it’s one of those things that you’re forced to buy if you drive a car. And because it’s one of the more unloved expenses, people will do just about anything to reduce it. 

Car insurance is expensive. The average UK motorist spends more than £471 per year insuring their vehicles; approximately £39.25 per month. If you’re unfortunate enough to be under the age of 30, you’ll pay substantially more.

The fact that car insurance is so expensive and not something that people choose without breaking the law means that a surprising number of people LIE when taking it out. Yes, you read that right: lie. And because of this, they’re putting their cover at risk. If the insurer finds out that specific details are not correct, then it’s entirely within their rights to claim that the policy is null and void. And if they do that, the driver not only has to pay out-of-pocket for any damage caused during an accident, but the police might not take too kindly to it either. 

Are you guilty of lying to insurers? Take a look at these common lies that people tell.

 

Reporting A Hit And Run When They Caused Damage To The Vehicle

Nobody would lie and tell an insurer that they’d been the victim of a hit and run when they, in fact, were the ones who had caused damage to the vehicle, would they? It turns out that they would. More than 18 per cent of the population admit to doing this – that’s nearly one in five people. It doesn’t give you much confidence in people’s natural inclination toward honesty. 

 

Using The Same No Claims Discount Across Multiple Vehicles

Insurers are pretty clear about their no claims bonuses – they apply to the same vehicle. If you change your vehicle, it has to have a different no claims policy. No claims policies are related to combinations of drivers and cars, not just something a specific individual builds over time, regardless of the vehicle they drive. With that said, 40 per cent of people inadvertently or deliberately, try to claim that the same no claims discount applies to a different vehicle. Again, this is the sort of thing that can void your insurance.

 

Allowing Non-Listed Drivers To Drive The Vehicle

Around 17 per cent of drivers admit to allowing somebody who is not a listed driver drive their vehicle. Of course, if that person were to be involved in an accident, the insurer wouldn’t pay out the claim. 

 

Failing To Include Prior Claims

Insurance companies want you to include prior claims when signing up so that they can get an idea of your risk. 14 per cent of people, however, admit to omitting previous claims information in an attempt to cut their premiums. 

 

Exaggerating The Severity Of Personal Injury

Want to know why insurance costs are going through the roof? It’s partly to do with “whiplash” claims. Claiming whiplash increases the amount of money paid out during an accident. 14 per cent of people admit to trying this one on. 

 

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