posted 11 months ago

Insurance Lies Exposed By DVLA Database

Thousands of motorists that lied to get cheaper insurance exposed by new database.

New Database Exposes Thousands Of False Insurance Declarations

More than four-thousand drivers per-week were caught making false insurance declarations to cut their premium in 2014 which was eighteen percent higher than 2013, the Association of British Insurers revealed. The total number of offenders was north of two-hundred thousand. 

View our top tips to legally reduce your insurance premium

Last year's higher detection rate can partly be attributed to the launch of MyLicence that enables an insurer to confirm online – as a quote is requested - a licence holder's entitlements, whether he/she has penalty points plus a range of other information. This ensures it is harder to conceal (say) a speeding conviction which could significantly increase the premium. 

Frequently exposed lies or mistakes included failing to reveal previous insurance claims and convictions. “Fronting” was also a common problem whereby a parent pretended to be the main driver of a teenager's vehicle. Other motorists claimed to live in low crime areas while residing elsewhere. Lies of this nature can backfire even if not exposed immediately. 

In a worst case scenario, the motorist could invalidate the policy – which ensures there is no cover should there be a collision – and be given a criminal record. 

Car Insurance – How to Ensure You Stay on the Right Side of the Law

The Association of British Insurers Fraud and Financial Crime Manager, Mark Allen, said: "Insurers recognise that innocent mistakes and oversights happen. But anyone lying to get cheaper motor insurance - or tempted by cheap insurance offers without first checking that they are genuine - risks driving illegally.

The consequences include getting a criminal record and a massive financial headache if found to be at fault for a crash. He added that initiatives such as the Insurance Fraud Register and MyLicence are: “Helping to reduce the scope for insurance application fraud."

Advice When Searching for Car Insurance

The Association of British Insurers has a range of tips that minimise the cost of motor insurance. It says:

  • “Shop around. Motor insurance is a very competitive market with insurers, comparison websites, insurance brokers all offering competitive deals that will ensure you get the right policy and the best price.
  • Lower your risk. The following can all help cut the cost of cover: have an approved immobiliser fitted, keep the vehicle garaged/on a driveway overnight, have a telematics-based pay as you drive policy.
  • Opt for a higher voluntary policy excess. The higher the amount of any claim you pay yourself, the lower the premium.
  • Buy your insurance from a reputable source and avoid policies sold via social media networking websites, pubs, clubs and newsagents.”