March 13, 2009

Recession-hit drivers are apparently extending the list of items on which they are economising to include the truth.

AA Insurance reports a 30% increase in motor insurance claims rejected during the past 12 months due to claimants cutting back on truthfulness.

The company claims to have seen a major upsurge in drivers failing to disclose convictions, providing false addresses, or neglecting to mention modifications and/or previous claims.

Fronting ‚ i.e. misrepresenting the identity of the main driver was also one of the main reasons for claims being turned down.

The AA’s Simon Douglas proposed the following philosophically problematic formulation: “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.”

Lie and face costly ostracism from the mainstream insurance market, he warned motorists: “The one or two insurers that do offer cover for  tainted’ customers charge an extremely high premium,” he said. “By bending the truth to try and save a bit of money on your premiums you could end up losing a fortune.”

Was he able to provide some kind of anecdotal illustration for these sweeping claims?

Certainly he was. One customer found to be frontin’ was left facing over £12,000 in costs when his son had an accident and the deception was uncovered.

Not bad, but a single example is hardly conclusive.

Well how about the owner of a Citroen Saxo Furio 1400cc modified to become a high performance car who ended up with a bill of £5,000 and substantially increased premiums, after failing to inform his insurer?

Fine. OK. That’s enough examples. Have you got any other stories?


ShareShare


What our clients say about us

Helped a lot with my questions and explained everything thoroughly, everything I needed after getting knocked off my bike!
Mr. J - Teddington