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Sunday, May 13, 2007
Are You A Car Insurance Pinocchio?
You may think telling your insurance company a little white lie does no harm but the reality of this can be somewhat different. In a recent report carried out by Admiral it has been highlighted that in actuality you could find yourself without an insurance policy if you are caught out.
“What constitutes lying to my car insurance company?” you ask. Well, for starters, something as seemingly insignificant as reporting your annual mileage to be much less than it is can be seen as a “lie” by your insurance company. This could result in a price hike on your policy or even end in your insurance policy being cancelled. This may seem pedantic but as the report states; “An insurance policy is a legal contract so it is vital your honest”.
The most common details falsified by policy holders are details such as; motor convictions (i.e. speeding fines), previous claim history, modifications, etc. In researching information for this article, I came across a “lie” that quite surprised me. For many a new car driver, cheap car insurance can be quite elusive and as such they may resort to insuring a car in their parents name and add themselves as a named driver. You may think this is acceptable but it would appear this is not the case. It is viewed as fraud by the insurance companies, as you will be the main driver of the vehicle not you parents. In the event of a claim you may find the insurance company will not pay out if they are able to ascertain this fact.
Thousands of policies are cancelled every year by these companies when it is found out a policy holder has lied to them. Even the smallest falsification can lead to the policy being claimed invalid by the supplying company.
So, what can you do to prevent this from happening to you? For starters, make sure you inform the insurance company of any claims you have had in the past three years, even if you were not at fault. If you receive a motoring conviction part way through a policy term, you are still under obligation to inform the policy issuer, even though they may not impose a charge. If you are in any doubt over an issue that may affect your premium, you should seek advice form the insurance company. Another thing to be wary of is applying for insurance online. Ensure that any details you are not asked for are reported to the company by phone after getting your initial quote. An example of this might be if your car has received after market modifications, such as, engine tuning chips, body kit, etc.
“What constitutes lying to my car insurance company?” you ask. Well, for starters, something as seemingly insignificant as reporting your annual mileage to be much less than it is can be seen as a “lie” by your insurance company. This could result in a price hike on your policy or even end in your insurance policy being cancelled. This may seem pedantic but as the report states; “An insurance policy is a legal contract so it is vital your honest”.
The most common details falsified by policy holders are details such as; motor convictions (i.e. speeding fines), previous claim history, modifications, etc. In researching information for this article, I came across a “lie” that quite surprised me. For many a new car driver, cheap car insurance can be quite elusive and as such they may resort to insuring a car in their parents name and add themselves as a named driver. You may think this is acceptable but it would appear this is not the case. It is viewed as fraud by the insurance companies, as you will be the main driver of the vehicle not you parents. In the event of a claim you may find the insurance company will not pay out if they are able to ascertain this fact.
Thousands of policies are cancelled every year by these companies when it is found out a policy holder has lied to them. Even the smallest falsification can lead to the policy being claimed invalid by the supplying company.
So, what can you do to prevent this from happening to you? For starters, make sure you inform the insurance company of any claims you have had in the past three years, even if you were not at fault. If you receive a motoring conviction part way through a policy term, you are still under obligation to inform the policy issuer, even though they may not impose a charge. If you are in any doubt over an issue that may affect your premium, you should seek advice form the insurance company. Another thing to be wary of is applying for insurance online. Ensure that any details you are not asked for are reported to the company by phone after getting your initial quote. An example of this might be if your car has received after market modifications, such as, engine tuning chips, body kit, etc.
# posted by gopi @ 9:25 PM 
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