Recent research has suggested that over 2 million car insurance policies could be invalid due to mistakes made by drivers or incorrect information being given to insurers.
In a recent survey 8% of people asked have admitted to giving the wrong information to insurance companies. When asked the reason, a staggering 60% admitted that they intentionally lied when taking out cover to reduce their premium and save money – and 20% said that they had either made a mistake or not known the answer.
The most common way that motorists tried to reduce their premium was to lie about their home address, whilst others lied about their annual mileage or where they would leave their car overnight.
Many drivers also admitted to lying about the number of points they have on their license or failing to disclose any driving convictions that they had.
However, drivers are not always to blame for mistakes made, as insurer’s systems can often force wrong answers to be given – this is most common with job titles where drop down lists are limited and you may not be able to find a suitable choice.
Giving false information to your insurer could cause problems if you were ever to make a claim. Your cover could be cancelled and the insurer could refuse to pay out. This would make it very difficult or even impossible for you to find new insurance in the future.
Driving without valid insurance can also lead to your car being seized by the police and taken to the impound. You could face fines and even have an IN10 conviction against your license.
