New research from The Green Insurer indicates that 16% of UK motorists have either exaggerated or provided false information to reduce the cost of their car insurance.
Among those who acknowledged doing so, the most common tactic was underreporting their annual mileage, with 65% admitting to this.
Other misrepresentations included claiming the vehicle was kept in a garage when it was not, or listing a lower-risk driver as the main policyholder. These approaches were cited by 18% of respondents who had not been truthful on their applications.
Additional disclosures from respondents included declaring the vehicle was not used for work purposes when it was (12%), and failing to report penalty points or previous claims, including for windscreen repairs (11%).
While some drivers resort to providing incorrect details, a larger proportion appear to be seeking legal ways to manage rising insurance costs. Nearly half (47%) of drivers said they had searched for lower premiums by comparing offers from different providers.
Another 13% opted to raise their voluntary excess or reduce optional cover such as no-claims protection or breakdown assistance. A further 5% reported purchasing diesel vehicles in an effort to reduce running costs.
Paul Baxter (pictured above), CEO of The Green Insurer, noted that although insurance prices are falling, the findings show that some individuals are still taking steps outside standard channels to manage expenses.
Baxter warned that while it is positive that many drivers are turning to legal cost-saving measures such as comparison tools, any misrepresentation on an application can result in cancellations or claims being declined.
In general, reports show that UK motorists are increasingly providing false information to reduce car insurance costs, with young drivers notably engaging in practices like "fronting" and purchasing policies from unregulated sources.
The Association of British Insurers (ABI) reported that insurers detected £1.1 billion worth of fraudulent claims in 2023, marking a 4% increase from the previous year. Motor insurance fraud accounted for £501 million of this total, with 45,800 cases identified.
Approximately 21% of male and 15% of female drivers aged 17 to 25 admitted to engaging in "fronting," where a more experienced driver is falsely listed as the main policyholder to secure lower premiums. This practice is illegal and can lead to severe penalties, including fines and license suspension.
Nearly 30% of young drivers have purchased car insurance through "ghost brokers" – fraudsters selling invalid policies, often via social media. Victims of such scams risk driving uninsured, facing legal consequences, and bearing the full cost of any accidents.
Insurers identified approximately 583,000 fraudulent insurance applications in 2023, a 17% increase from the previous year. These included misrepresentations of personal details to obtain cheaper premiums.
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