As many as 2.5 million motorists in the UK could have invalid car insurance and a further 6% could have no insurance at all, price comparison website uSwitch has found.
Research has shown that 10% of UK drivers lie during the application process in order to save money on their premiums, either not realising or willing to risk that this could invalidate their insurance
policy if they tried to make a claim.
More than 1.5 million drivers knowingly falsify information, omitting such details as driving convictions, their age, address, length of no claims, engine size, where the car is parked over night and whether they use it to get to work.
If each driver with an invalid policy had to pay for the claim should they have an accident, it would amount to £4.15 billion – four times more than it would cost for them to be properly insured with an accurate policy.
Aron Thompson, Head of Insurance at uSwitch, says: “With many consumers seeing car insurance as a grudge purchase, it’s no great surprise to see people either withhold or knowingly provide inaccurate, crucial information in order to get cheaper cover.
“To the consumer, this may seem like a little white lie to save money. In reality, it could end up teaching the driver a costly lesson, on average £1,636, as the provider is under no obligation to settle a claim based on a policy which is inaccurate.”
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