Insurance Lies Put Cover at Risk
- News
- Published: 23 Dec 2008 in Motoring and General
The representative body of the insurance industry has warned that an increasing number of people are lying when taking out a new insurance policy in an attempt to get a better deal, but by doing so they are running the risk of invalidating their cover.
The Association of British Insurers (ABI) said when members lie on application forms or fail to disclose important information, such as previous driving convictions to try to keep their premiums down, it puts them at risk of not getting cover when they truly need it.
One policyholder, who failed to inform insurers of two convictions for driving without insurance, had a £7,000 claim rejected when his car was stolen.
Another common practice is known as fronting. This is when parents claim they are the main driver of a car on a policy, but really it is their son or daughter.
Nick Starling, the ABI's director of general insurance and health, said: "Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences. Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal."