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Drivers' Lies Affect Car Insurance ; PERSONAL FINANCE

Jul 13, 2007

One in ten motorists could have invalid car insurance because they lied when they applied for the cover. Research discovered that about six per cent of people intentionally lied about basic details such as their age and address, while a further five per cent lied about where their car is parked at night in a bid to save money, according to price comparison website

More than three per cent of drivers also failed to declare convictions for speeding and drink driving or any driving bans they had received.

The research also found that 15 per cent of people who use their car to drive to work claim they don't commute in it, instead opting for insurance that offers cover for social and domestic use only.

Three out of four people admitted that they were fully aware that providing incorrect information could invalidate their policy, with nine per cent saying they did it to keep the cost of cover down.

But a third of people said they had made a genuine mistake and 16 per cent claimed they didn't understand the question on the application form.

The group warned that providing incorrect information could invalidate a motor insurance policy, leaving the motorist to foot the bill for a potential claim themselves.

It added that at pounds 1,636 the average car insurance claim was four times higher than the average annual premium of pounds 409.

Aron Thompson, head of insurance at, said: "With many consumers seeing car insurance as a grudge purchase, it's no great surprise to see people either withhold or knowingly provide inaccurate, crucial information in order to get cheaper cover.

"To the consumer, this may seem like a little white lie to save money. In reality, it could end up teaching the driver a costly lesson - on average pounds 1,636 - as the provider is under no obligation to settle a claim based on a policy which is inaccurate."

But he added that people were not always deliberately being dishonest, and there was a lot of confusion among consumers as to what counted as using a car to commute.

(c) 2007 Birmingham Post; Birmingham (UK). Provided by ProQuest Information and Learning. All rights Reserved.

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