Our LexisNexis Risk Solutions survey* of 1,500 drivers has uncovered how far some are willing to stretch the truth to obtain a cheaper insurance quote or to get an insurance claim settled. The survey demonstrated both the scale of dissatisfaction amongst drivers about the cost of motor insurance premiums and a lack of understanding of the risk of providing false information.
In some cases, deliberately providing inaccurate information could result in insurance cover being cancelled or a claim not being paid which may harm a driver’s ability to secure insurance cover in the future.
Fibs and the occasional whoppers some motorists think are acceptable
- 40% Using the same no claims discount/bonus on multiple vehicles
- 18% Reporting a hit-and-run accident when they damaged the vehicle
- 17% Changing information regarding their occupation or age on a car insurance application to lower the cost of the premium, 35% of 18-34s are most likely to try this tactic
- 17% Letting a driver not listed as a named driver on the policy drive their vehicle
- 16% Using a different address (family member or a friend) to lower the cost of their premium
- 14% Omitting previous claims information on a car insurance application
- 12% Exaggerating the severity of a personal injury (e.g. whiplash) to increase the amount of money paid out
- 12% Changing the number of years of valid no claims discount/bonus
- 12% Exaggerating the damage to a vehicle to increase the pay out
- 11% Reporting a different driver than the one who caused the damage to make a claim
- 11% Receiving a payment for a claim made and then re-reporting the damage later
- 10% Intentionally damaging or abandoning their vehicle to claim a total loss and get the vehicle replaced
Honesty is always the best policy. Drivers risk their policy being cancelled and any claims refused if they are found to be less than truthful with their insurer. Not only does this leave them at risk of funding their own repairs in the event of damage to the vehicle, but it could also make it difficult for them to obtain insurance from any other provider in future.
Younger drivers tend to pay the highest premiums because they are proven to be the riskiest so it’s easy to see why this age group are more likely to stretch the truth than older drivers. Our research does suggest an urgent need for much more awareness and education of the risks of supplying inaccurate information to their insurance provider.
In most cases, drivers providing false information do so without realising the potential consequences. As an industry, we need to do more to help consumers understand the value of cover and the importance of providing full and accurate information to their insurance provider.
*LexisNexis Risk Solutions commissioned a survey of 1,500 UK consumers with equal or sole responsibility for insuring the vehicle they drive most often. LexisNexis Risk Solutions was not identified as the sponsor of this research, which was completed during January 2018.