Not being totally honest when applying for car insurance could void your cover!
Having to purchase car insurance is one of the biggest outgoings when running a car to drive on UK roads and can cost a fair amount of money every year.
As a result, many drivers look for ways in which they can cut the overall costs of running a car, however not being honest with your insurance provider shouldn’t be one of them.
According to CompareThe Market.com, the average cost for the lowest price car insurance has increased from £475 in September 2012 to £650 in September 2018. The price for an average premium has risen by £210 from £550 to £760 within just six years.
In an effort to reduce the price of their insurance policy, many motorists risk invalidating their cover by not being totally honest with their provider.
How much you pay depends on the information provided and it’s always best to be clear and honest with your insurance provider, as acting dishonestly could result in a settlement refusal in the event of a claim or your policy could be cancelled.
Your insurer could act as though your policy never existed if they discover you’ve been fraudulent with your application. You could even end up in court and struggle to get insurance in the future.
There are a number of ways in which you could invalidate your car insurance policy, including withholding information about previous claims or damage to your car – you must inform your provider of any accidents, bumps and knocks even if no claims were involved.
You should also provide as much information as possible when describing your occupation, as some jobs are considered a higher risk than others. If you change jobs you need to inform your provider straight away as this could affect the cost of your premium.
Not disclosing penalty points or other driving convictions is fraud. Any penalty points or motoring convictions should be declared when applying for insurance cover. If you receive any whilst covered by your insurer, you must inform them straight away.
When filling out ‘class of use’ on your application for insurance cover, make sure you choose the appropriate category as this determines what you are or aren’t covered for whilst driving. If you use your car for business purposes then you need to state ‘business use’.
Sometimes parents will put themselves down as the main driver to help a younger driver get cheaper insurance, adding their child as an additional driver – this is classed as fraud and known as ‘fronting’. The person who’s going to drive the car the most must be put down as the main driver on the policy, any additional drivers should only be put on if they intend to use the car occasionally.
“Honesty is always the best policy when applying for or renewing your car insurance,” said Lee Griffin, Founder and President at GoCompare, adding: “Drivers are required to answer all the questions on the application form as fully and accurately as possible.”
“The consequences of withholding or giving false information to obtain cheaper car insurance can be severe. Far from saving money, being untruthful can be costly should you need to make a claim and may even lead to your policy being cancelled or invalidated,” said Mr Griffin.
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