False details include reduced annual mileages, claiming to have a garage or immobiliser when none exists, claiming to have a lower risk occupation and saying a car is never used for work when it is
Given the recent rise in insurance premiums, 18% of motorists say they would be tempted to stretch the truth about such factors when they apply for their next policy renewal
Around 15% of drivers who gave false information when they applied for a policy have had car insurance claims rejected or scaled back because they had not told the truth
The cost-of-living crisis and the rising cost of motor insurance is encouraging UK drivers to be economical with the truth when applying for policies, finds new research* from The Green Insurer, which is focused on helping drivers reduce carbon emissions and drive in a more environmentally friendly way.
Over a quarter (28%) of UK motorists surveyed admit to stretching the truth in order to reduce their car insurance premium. The biggest fabrication, admitted by 21% of drivers, was to understate their annual mileage.
Other fibs include saying that a car is kept in a garage when not in use, stated by 6% of drivers, and falsely claiming to have an immobiliser for their car, reported by 3%. Drivers also admitted to claiming they had a lower risk occupation or stating that their car was not used for work when it is.
A minority of motorists are likely to continue making false claims on their applications for policies, especially now that premiums are on the rise. Almost a fifth (18%) say they would be tempted to stretch the truth in future in order to secure lower premiums.
When asked what they would be most likely not to tell the truth about, mileage and the use of a fictitious garage were mentioned by 16% and 5% of motorists respectively. Drivers aged 65 and over appear to be the most honest when applying for cover, with 83% saying they would not provide false information, compared to just 63% of 18-24 year old drivers.
Younger drivers who had provided false information when applying for a policy are also more likely to have had a car insurance claim rejected or scaled back because they were found not to have told the complete truth. While almost a third (31%) of 18-24 year old drivers surveyed said they had a claim rejected on this basis, no drivers aged 55-64 and 65+ age groups had been refused a payout because they had provided false information.
Paul Baxter, CEO, The Green Insurer, said: “Lying to secure lower insurance premiums is never a sensible idea, because as our research shows, the more likely people are to provide false information, the more likely they are to have insurance claims rejected or at least scaled back.”
“Of course it can be challenging to pay for motor insurance premiums, especially for younger drivers who are offered higher prices because of their relative inexperience. But a better idea is to avoid stretching the truth altogether and instead choose a policy that exchanges lower premiums for careful driving – and helps protect the environment at the same time.”
*Independent consumer research conducted by Viewsbank among a nationally representative sample of 1,074 adults aged 18-plus including 840 car owners between February 1st and 5th 2024.