Motorists lie to insurance companies

According to research by RAC Financial Services, one in ten motorists lie to insurance firms to keep premiums low.

One of the most common lies is claiming to store a car in the garage when it is not. The RAC warned motorists that lying when applying for insurance might end up invalidating the policy. Lying about details in order to obtain a low quote is also fraudulent and can result in a criminal record if prosecuted.

The RAC also said that some people feel compelled to reduce the cost of their UK car insurance due to high cost of living in the UK. However, experts believe that taking this course of action can actually be a false economy as giving false details will invalidate policies thus leaving the motorist with the bill for any repairs or damage to the car anyway. Taking out minimal cover can also prove to be poor financial judgement as these policies will often leave you with the bill for any repairs or damage that you are responsible for. It is believed that one quarter of motorists took out minimum levels of cover in order to reduce premiums.

Of those quizzed in the RAC report, nine per cent admitted to haven driven without insurance. Accidents involving motorists without insurance contributes significantly to rising insurance premiums. Some motorists have even been know to pay for damage or repairs to their cars after being involved in a crash with an uninsured driver as they have no insurance company to claim. What tends to happen in these cases is the uninsured driver being convicted of driving without insurance. This, however, is of no consolation to the insured driver when left out of pocket.

In addition to these figures, one quarter of motorists quizzed said their car had been on the road without a valid MOT, while eighteen per cent admitted they had driven with a tax disc that had expired.

All the behaviours mentioned are all illegal and can lead to a criminal record if prosecuted and found guilty. These convictions are classed as fraud and as a result can lead to difficulty in obtaining car insurance or much higher premiums. A conviction can also affect your credit rating, which in turn can lead to difficulty in obtaining credit in the future.

Currently, driving uninsured is a particular concern for motorists and motorist organisations, who hope to soon see a reduction in those driving without insurance.