Which? uses cookies to improve our sites and by continuing you agree to our cookies policy

Lying for insurance on the rise

Honesty is the best policy for applications

Increasing numbers of people are running the risk of invalidating their insurance cover by lying when they take out a policy in a bid to get a better deal, a UK trade body has warned.

You can compare car insurance policies on the Which? website

Compare car insurance policies on Which.co.uk

The Association of British Insurers (ABI) said its members were uncovering a growing number of cases of front end fraud, under which customers lie on application forms or fail to disclose important information to try to keep their premiums down.

 The ABI said common deceptions included not disclosing motoring convictions, ranging from speeding to drink driving. In one case a policyholder whose vehicle was stolen had his £7,000 claim rejected because it was discovered that he had failed to disclose two convictions for driving without insurance.

Another common practice, known as fronting, is where parents add their son or daughter to their motor insurance policy as an occasional named driver, when they are actually the main driver. Other deceptions include failing to mention previous claims made on policies, such as for car accidents or burglaries, and underestimating alcohol and tobacco consumption when applying for life insurance.

Nick Starling, the ABI’s director of general insurance and health, said: “Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences.

“Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal.”


© Press Association 2008

Sign up to the Which? weekly money email

For the latest money saving news direct to your inbox sign up the weekly Which? Money email to receive top money saving tips, product reviews and the latest news every Wednesday.

Which? RSS news feed

For daily consumer news, subscribe to the . If you have an older web browser you may need to copy and paste https://www.which.co.uk/feeds/reviews/news.xml into your newsreader. Find out more about RSS in the Which? guide to RSS news feeds.

Back to top