False information and your car insurance cover

While some stick to honesty and seek the wise counsel of experts in achieving this, many try to be a bit too smart by wanting to evade honesty and embrace falsehood. Of all the dishonest devices fashioned by desperate motorists the most worrying has been the evasion of insurance. This has even attracted serious government attention and a plan to tackle it headlong has been advanced.

Cost of fraud on customers
But another issue provoking concern is the failure by drivers to disclose vital information to insurers either when taking out car insurance or when making a claim on their policy. This has an equally bad implication for all car insurance customers, just like insurance evasion.

Failing to disclose the whole truth to insurers, according to figures from an insurance firm, costs honest motorists additional £30 on their car insurance premiums annually. This amount, at a time of serious recession like this, could make a lot of difference to one’s budget and knowing that one is made to part with it due to someone else’s fault could be really annoying. Yet it is those behind the act that need to reconsider their moves and try to make amends.

In addition to the cost they force innocent motorists to defray, they also end up amplifying their own problems. Every doubful claim made by a claimant is not just declined but also made to go through a rigorous process of investigation. If found to be fraudulent the claimant gets their policy voided, their record dented and it becomes an issue for them when applying for a policy in the future.

Not telling the whole truth amounts to fraud and can result in your cover being voided, possible prosecution and potentially thousands of pounds in costs, especially if there are injuries involved,” said Director of AA Car Insurance Simon Douglas.

Although such motorists may still find some insurers willing to sell cover to them, the premiums could really be exorbitant and when someone considers this and other costly prices vis-�'-vis the intended gains, it becomes completely worthless to want to resort to fraud to beat down cost.

Example of dishonest moves
Most of the devices applied by motorists to fraudulently mislead insurance are not new, but they are worth mentioning in this article.

Undisclosed convictions are an issue taken seriously by insurers. Motoring offences, when they reach a point, could make it very hard for one to get cover sold to one by insurance firms. Often motorists with tainted records would want to hide this from insurers, although their bid to do this is usually uncovered.

Another strategy is fronting, which comes in various forms, as people try to cut premiums by concealing the fact that an inexperienced or young driver is the main driver.

Hiding previous claims, failing to tell insurers about modifications or add-ons to an insured car and providing false address are all attempts, amongst many others, to give a false picture of one’s actual situation to insurers. The implications, as have been discussed earlier, are obvious. Rather than hoping to cut cost via fraudulent means a honest piece of advice to motorists is to always compare prices and seek the assistance of experts where necessary.

Article Source: http://www.articlesnatch.com

About the Author:

By: Musaaliyu
Find out how giving false information when taking out car insurance can impact you accident claim?