You are probably under the impression that people are always honest when applying for car insurance. If you are, then you will be surprised to hear just how many people knowingly provide incorrect or false information when doing so.
According to information provided by the Association of British Insurers (ABI), the insurance companies in the UK spotted just over 180,000 attempts of being provided with fraudulent car insurance applications last year. These included things like not informing the insurer about motoring offences and details of previous claims that were still on the records.
So, why do people act in this way? Well, it is probably because they think that by acting dishonestly that they will be able to get cheaper car insurance. Yes, they may be able to do so but what happens if they are found out as all these people have been in 2013?
Well, their insurer may decide that they are no longer prepared to provide them with insurance cover in the future meaning that they will have to try to find an alternative insurer. If they can, their new premium will no doubt be considerably more than they have been paying. Furthermore, if they were to make a claim that can often run into many thousands of pounds and it then be discovered that they had provided fraudulent information when applying for the cover the insurer may not meet their claim.
It really is not worth being dishonest when applying for car insurance as it could cost those doing so dearly in the long run. It is certainly costing the honest policyholder money, as their premiums are higher due to the amount of undetected insurance fraud.
The insurance industry has and is putting systems in place to identify fraudulent car insurance applications.
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