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