A trade body reported that numerous car owners are jeopardizing their insurance cover by providing incorrect information to insurance companies to reduce their premiums. The Association of British Insurers said that clients who did not reveal essential facts were putting their insurance cover at risk. Motorists need to inform insurance providers of facts such as motoring convictions when they take out a policy.
The consequences of providing false information could be that providers will not pay out claims and it could be difficult to take out another insurance policy. It is also possible that criminal charges could be brought against clients who provide incorrect details.
However even though there could be negative consequences research shows that many people would alter information in order to obtain less costly premiums. More than half the people interviewed for the survey think it is alright to name themselves as the main driver of a vehicle when their child is actually using the vehicle most.
One in five motorists would consider altering the time since they had submitted an insurance policy claim in order to reduce their monthly premiums. Other participants in the research said that there is a possibility that they would supply the incorrect age or job.
Nick Straling commented that providing false information to the insurer would come at a cost to the client. He said that it is understandable that people want to pay the most cost effective premium but lying is not the way to achieve this goal. He added that if motorists used this tactic they could be driving illegally. Other consequences include making it harder to find insurance policies and financial products.Author's Google+ page