In the UK there are motorists convicted every year for car insurance fraud which has a knock-on effect on honest motorists. It is estimated that fraudulent insurance claims increase the average car insurance premium by around £50. As a result of dishonesty from some drivers, innocent motorists are being penalised. Motorists committing fraudulent offences could find themselves in huge trouble and with a fraud prosecution.
Car insurance fraud could occur simply by just a few errors such as something as simple as providing incorrect information to making false whiplash claims.
Other issues include things such as crash for cash scams, fronting and fabricated claims which will also result in prosecution.
Motorists that are found to be withholding certain information from they insurer such as the type of car they drive, previous driving history, where they live and who the main driver is will also be punished.
Drivers should be as transparent and accurate as possible when applying for cover to avoid running into problems down the line.
If it is found that the driver has falsified information about things such as the address, job, where the car is parked overnight etc then the insurer could refuse to pay out for a claim.
Matt Oliver, from GoCompare car insurance, explained to Express.co.uk; “It’s incredibly important to be as honest and accurate as possible with your insurer, as the consequences of misleading or withholding information can be really severe.
“Technically speaking, insurance is considered a contract of ‘good faith’ which basically means that both insurers and customers need to disclose all relevant information.
“That means, for example, if you’re asked a question by your insurer like how many miles you drive, what your occupation is, whether you’ve had a claim or conviction in the past, or anything else, you need to answer honestly and as accurately as you can for your policy to be valid.
“Failing to be honest with your insurer can have some serious consequences, these can include your insurer refusing to pay out for any claim and also your insurer cancelling your cover, which can have a serious impact on your chances of getting insurance in the future.
“In some cases, you could even face criminal prosecution, if it’s deemed you have committed insurance fraud.
“So while a few white lies to knock a couple of pounds of your premium might seem like a way to get cheaper cover, it’s really not worth the risk.”