Economy with the truth costs drivers dearly

AA Insurance is warning drivers to beware of seeking to economise on car insurance premiums by failing to come clean on details such as previous claims or convictions.

The number of claims refused by insurers due to people giving incorrect or false details when they take out insurance has soared by nearly a third in the last six months, according to AA Insurance.

It estimates that fraud now adds around £30 to every private car insurance policy in the UK, with honest customers effectively subsidising fraudsters by this amount.

Top reasons for the upsurge in refused claims are:

undisclosed convictions;

"fronting", where people try to cut premiums by misleading insurers over who is the main driver (especially where a young or inexperienced person is the main driver);

failing to tell insurers about previous claims;

failing to tell insurers about modifications made to the car that could affect its safety or value; and
providing a false address where the car is kept

Simon Douglas, Director of AA Car Insurance, says people should not be "economical with the truth" in an effort to cut their premiums when shopping around for cover.

"Over the past six months we have seen a huge upsurge of cases where insurers have cancelled cover because customers haven't informed them of important facts.

"Not telling the whole truth amounts to fraud and can result in your cover being voided, possible prosecution and potentially thousands of pounds in costs, especially if there are injuries involved.

"On top of that, you will find it difficult to find cover in the future. The one or two insurers that do offer cover for ‘tainted' customers charge an extremely high premium.

"Insurers will investigate if there is reason to doubt information that customers provide. By bending the truth to try and save a bit of money on your premiums you could end up losing a fortune."