It’s been a trend for some 20 years or so. Yes, we are talking about quote manipulation, where job titles, named drivers vs main driver, concealing other non-motoring convictions and more are all being used to keep premiums down. Is it legal or truthful? Nope. Could it cause your claim to be declined? Yep. Non-disclosure.
Here’s some research from The Green Insurer on the topic;
(Hmmm just writing that word has made your Editor crave a Topic, haven’t had one for years.)
The high cost of car insurance premiums has led three in 10 (29%) UK drivers to admit that they had sometimes stretched the truth in order to reduce their car insurance premium, according to new research from The Green Insurer, which is focused on helping drivers reduce carbon emissions and drive in a more environmentally friendly way, shows.
The most common fib that drivers are prepared to go with when applying for car insurance is reducing their annual mileage (63% of those who admit to stretching the truth); (hello, the MoT database is a public record and that logs your miles each year – Ed) this is followed by saying a car is parked in a secure garage when it isn’t (16%); wrongly stating that a car was not used for work (10%) and claiming to have a lower risk occupation (8%).
List of incorrect statements made by those drivers who admitted to stretching the truth when applying for car insurance;
Mistruths Percentage of respondents
Slightly reduced annual mileage 43%
Significantly reduced annual mileage 20%
Car was parked in a garage 16%
Car is not used for work 10%
Lied about occupation 8%
Neglected to include a previous claim 7%
Put car insurance in the name of driver who is less expensive to insure 6%
Car has immobiliser 5%
Have Advanced Driver training 4%
The findings reveal that two-thirds (65%) of motorists claim to have been impacted by the recent hikes in car insurance premiums. Of those who say they have been affected, four in five (79%) have shopped around for the cheapest car insurance premium; 18% have increased their excess or removed add-on elements such as no-claims protection or recovery services; 9% have removed younger or older family members from the policy and 8% say they have bought a diesel car because they are cheaper to run. Five per cent have taken the drastic action to give up driving altogether or sold their car and bought a cheaper one.
Paul Baxter, CEO, The Green Insurer, said: “We would always advise motorists to be truthful when applying for insurance as accurate information is essential for determining the appropriate level of coverage and premium rates. Misrepresentation of the facts, however minor they may seem, is never a good idea as it can result in policies being invalidated or claims being denied in the event of an accident occurring.
“However, as our research has shown, high car insurance premiums are having a real impact on drivers. It is good to see that the majority of those affected are shopping around for the best deals. Our own insurance premiums, which were developed for eco-conscious drivers, are available across all four major price comparison websites and look to reward motorists with lower premiums for careful driving, whilst also helping to protect the environment.”
Related
link