Five fibs that could invalidate your car insurance
26 August 2021
Being economical with the truth on your car insurance application can save you money in the short term, but it could have expensive consequences if you get caught.
When your insurer finds out that you lied they could cancel your policy, refuse to pay out for a claim, or even prosecute you for fraud.
In 2018 almost 450,000 confirmed or suspected dishonest applications were flagged by insurers. GoCompare has shared the five most common lies people tell so they’ll get a cheaper quote.
1. How the car is used
A common fib people tell on their car insurance application is how they’re planning on using their car.
The cheapest option is known as ‘social, domestic or pleasure’, and only covers you for trips like visiting friends or going to the shops.
If you use your car to get to and from work, you’ll need to ensure you’re covered for ‘social and commuting’.
People who use their vehicle as part of their profession (e.g. delivery drivers) should be purchasing insurance that will cover their car for business use, too. Insurance for business use or commuting is more expensive as you’re likely to be driving during the busiest time of the day.
2. ‘Fronting’
People who’ve been driving for a long time and have a clean record are usually able to get cheaper car insurance. Sometimes people will take advantage of this by taking out a policy on a car in an experienced driver’s name and adding someone who’s recently passed their test as a named driver. Insurers consider this to be fraud. The person who is going to be driving the car most often should be the main policy holder.
3. Occupation
The job that you enter on your car insurance application can make a difference to the cost of your premium. Some people might give themselves an incorrect job title or say they work in a different industry to get cheaper insurance.
In order not to invalidate your policy you should tell the truth. You will also need to inform your insurer if you change your job while your policy is active.
4. Withholding information about previous claims or damage to your car
Entering your history of accidents and insurance claims into your application can be time-consuming, and it could make your quote more expensive.
However, if you fail to declare any incidents - even if you weren’t found to be at fault, or you didn’t claim for the accident, it could mean your insurer won’t pay out for a claim.
5. Failing to own-up to penalty points or other driving convictions
If you deliberately fail to disclose any driving convictions or points on your licence when applying for car insurance, your application would be considered fraudulent. To avoid getting into trouble you should be honest about your driving record, and let your insurer know if you receive any points during the term of your cover.
It’s illegal to be on the road as an uninsured driver, and any inaccuracies in your application could invalidate your insurance. Lying on your application could land you with a big bill or even a criminal record.
It’s best to tell the truth when you’re applying for car insurance and update your insurer with any changes to the details you first entered. In some cases, like moving house, it could mean you get issued with a partial refund. There are plenty of legal ways to reduce the cost of insuring your car, like shopping around or opting for black box insurance, and they don’t have the same potential risks.
