Lying to Insurers Can be a Very Costly Mistake

Motorhome owners are being urged not to become part of the 33% of drivers who have considered embellishing their answers when completing an insurance application form in order to keep the premiums down.

In addition to being economical with the truth, the findings showed an increasing number of people happy to not fully disclose specific information. However, the whole of the insurance industry have warned that this could end up being an expensive mistake as it may render any claim invalid. Out of all of those questioned 54% said price was more important than having the peace of mind that they were covered, and 73% believe there were some circumstances where it was acceptable to stretch the truth or tell a white lie. In 2011, the ABI (Association of British Insurers) said that insurers exposed 2,800 fraudulent claims every week. Failing to disclose all information at the application stage of motorhome insurance will have disastrous consequences in the long term when a claim is rendered invalid and the driver is left with a huge bill, not to mention problems trying to get insurance again.

All Insurers, the police, the DVLA and other bodies in the insurance industry are sharing data in order to clamp down on those committing insurance fraud, and the more they catch the more likely the premiums will come down for the honest motorists. Drivers are also being warned that receiving their insurance papers does not mean that any lies have gone unnoticed because generally when a claim is made the insurer will do further checks. If they find out that someone lied on an application form then they are perfectly within their rights to reject the claim and cancel the policy. As well as affecting any money paid out towards repairs or medical treatment, this may also mean that any other driver injured or whose vehicle has been damaged will more than likely have to go through other channels to get compensation.

Insurance fraud isn’t a victimless crime either because it costs every honest driver. So the message is to think again because the little white lie told to an insurer is not as harmless as you think.

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