Motor insurance lies 'could prove costly'

Motor insurance customers were today reminded that their cover may not be valid if they provided their insurer with false details when they purchased their policy.

Research commissioned by price comparison website uSwitch.com concluded that as many as 2.5 million drivers had failed to supply accurate information to insurance companies in a bid to keep the cost of their policy down.

Giving incorrect ages and addresses and lying about where a vehicle is parked overnight were among the most common pretences, but three per cent of those polled also confessed to failing to mention motoring convictions.

The website's head of insurance, Aron Thompson, said he understood why people tried to keep the cost of a "grudge purchase" to a minimum, but warned that providing false information was the wrong way to go about finding an affordable motor insurance deal.

"It could end up teaching the driver a costly lesson … as the provider is under no obligation to settle a claim based on a policy which is inaccurate," said Mr Thompson.

The Association of British Insurers recently estimated the cost of fraudulent insurance claims at £4 million a day and said that they add £40 to the price of every policy.

Kwik-Fit Insurance was named the cheapest online car insurance provider of 2006 by independent research.

© Adfero Ltd

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