If somebody made an application for a
car insurance policy but included false information that was discovered, the insurer would be well within their rights to reject the claim. Depending on the severity of the bogus information that is given, the applicant could end up blacklisted by all car insurance companies, leaving it virtually impossible for them to be able to drive legally again.
It seems amazing then that as many as 1 in 10 drivers in the UK admit to lying to their motor insurer in a bid to save the cost of a possible rise in their premium.
The most obvious risk to giving wrong information is when the motorist really needs to make a claim following an accident, damage or theft of or from the vehicle. If the insurance company finds out that the information given is bogus when the claim is made, they can and usually do, exercise their right to refuse to make any payment whatsoever.
In the case of a car accident, the details supplied when the application was made are checked against the applicants’ present circumstances and the details of the claim itself. If a discrepancy is found, the insurer can decline any payout, which highlights the importance of being truthful when giving details to you insurer.
It appears that consumers are more likely to mislead their insurance company when it comes to giving information about a driver’s age, address, or where the car is parked at nighttime. A small minority of motorists also fail to declare any speeding penalties or bans for drink driving, when renewing a policy or applying for a new one too.
The Association of British Insurers says that the cost of uninsured motorists to law-abiding drivers works out at about £30 per person per year.
However, insurance companies are now investing in sophisticated technology in a bid to prevent fraudulent information being used to reduce premium costs. This will be good news for the honest consumer, as it is anticipated the cost of dealing with people who lie to their insurer will fall, which could have a beneficial effect to premium prices.
The new software can analyse the patterns of claims that are being made by certain individuals in a bid to cut back the current trend in falsified claims.
Rochelle Martinez, Freelance Web Content Article Writer for three years. Some of her articles are about
http://www.quinn-direct.com.
