Rampant car insurance fraud
Wed, 11 May 2005
Around one in ten motorists lie on car insurance applications in order to secure cheaper cover.
The research, conducted by RAC Financial Services, also discovered that 25 per cent of motorists have driven illegally at some point as a way of saving money.
Around 11 per cent of drivers admit to lying about where they keep their car, in particular claiming the vehicle is kept overnight in a locked garage.
Other untruths include six per cent deliberately under-estimating the value of a car and three per cent lying about a car's power and performance, whilst two per cent give a different main address in an attempt to lower premiums.
"When you look at the bills they face, it's easy to understand why people feel pushed to reduce their car costs, but it's often a false economy," said RAC Financial Services spokesman, Philip Hale.
"Many insurance policies will be invalid if the details given don't match the vehicle and minimal cover just means you're more likely to have to pay for repairs, or damage you cause."
© DeHavilland Information Services plc
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