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Rise in Car Insurance generates rise in honesty

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A recent survey held by 72point for Confused.com revealed that drivers are less likely to withhold information when completing a car insurance quote despite rising premiums.

Almost one in seven of us (14%) are guilty of being ambiguous or not revealing material facts when attempting to find cheaper car insurance. However, despite the rise in insurance costs, this figure is down quite significantly compared to last year.

A UK-wide survey of drivers carried out for the car insurance comparison site last year revealed that 32% of women and 46% of men admitted to forgetting or not disclosing material facts to get cheaper cover.

This year that figure has dropped to just 12% of women and 17% of men who say they have been ambiguous in order to secure a cheaper quote.

Not disclosing the annual mileage of the vehicle is top of the list of false claims, with almost 50% of women and 44% of men who have told their insurer they drive a lot less miles than they really do.

The next most popular incorrect material fact is about where the car is kept at night – almost 28% of women and 31% of men admitted telling their insurers the car is in the garage when it’s really kept outdoors. Similarly, nearly 23% of women and almost 12% of men say their car is in the driveway when in actual fact they are keeping it on the pavement.

Incorrect details, whether by accident or on purpose, provided to insurers is rife in the London area, with 19% being wrong compared to just 3% in the East Midlands and only 2% in Northern Ireland. The majority of the UK has a rate of less than 10% of drivers not disclosing information to their insurers.

Advice is being offered to owners of cars which are off the road to familiarise themselves with new insurance rules. New legislation, called the Continuous Enforcement Rule, means Government officials will be allowed to clamp, tow away and destroy uninsured vehicles and this includes those parked on private driveways.

Ian Donaldson, Managing Director of Autonet Insurance, said, “People may be tempted to manipulate their responses to gain a positive premium when processing a car insurance quote, but it is not advisable. It can invalidate insurance and if a claim is made then they may not receive a pay-out. It’s positive to see that more and more people are realising this, and that honesty is the best policy.”

 

By Ben Malkin

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