Car users 'lie to get cheaper insurance'
Published On 10 July 2007
Over 2.5 million people in the UK have car insurance which is invalid, a new survey has revealed.Data gathered by consumer website uSwitch.com found that ten per cent of all drivers admitted they lied when applying for their car insurance - potentially invalidating their policy.
A further six per cent of drivers take to the road without any insurance at all.
Three-quarters of people said they were aware that lying on their application will invalidate their policy. The most common lies people tell were about where they park their car at night, while others cover-up their true age and addresses.
The website revealed that the small savings that drivers make by lying is outweighed by the cost if they are discovered - a failed claim typically costs £1,636.
"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," explained Aron Thompson, head of insurance at independent online price comparison and switching service, uSwitch.com.
"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."
AA figures show that the average cost of comprehensive car insurance reached £802 in the first quarter of 2007.
