AA warns against car insurance fraud

Being ‘economical with the truth’ when buying car insurance is false economy, motor insurer the AA has warned.

Failing to admit to previous claims or convictions is insurance fraud, the AA said, and will result in insurance being voided if the cover-up is discovered.

“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 Simon Douglas, AA Car Insurance director.

Car insurance fraud has soared by nearly a third in the last six months, the AA said, and the practice adds around £30 to every policy held by honest customers.

In addition to failing to disclose claims and convictions, other acts of insurance fraud include ‘fronting’, which involves misleading insurers over who is the main driver, failing to tell insurers about vehicle modifications, and providing a false address for where the car is kept.

“Over the past six months we have seen a huge upsurge of cases where insurers have cancelled cover because customers haven’t informed them of important facts,” Douglas said.

He added: “By bending the truth to try and save a bit of money on your premiums you could end up losing a fortune.”

In one case of fronting, a customer was left with a £12,000 bill after his deception was uncovered when his son had an accident.

As well as having their cover cancelled, fraudsters who are found out can have difficulty finding cover in the future.

“The one or two insurers that do offer cover for ‘tainted’ customers charge an extremely high premium,” Douglas said.

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