Wed, 25 May 2005

As many as one in ten motorists lie on Car Insurance applications in order to reduce insurance cover costs.

The research, conducted by RAC Financial Services, discovered that 11 per cent of drivers admit to lying about where they keep their car, in particular claiming the vehicle is kept overnight in a locked garage.

Other untruths include six per cent deliberately under-estimating the value of a car and three per cent lying about a car's power and performance, whilst two per cent give a different main address in an attempt to lower premiums.

However, many insurance policies will be invalid if the details given are discovered to be incorrect when a claim is made. Instead consumers are being encouraged to shop around for the best deal rather than risk having no valid insurance.

"When you look at the bills they face, it's easy to understand why people feel pushed to reduce their car costs, but it's often a false economy," said RAC Financial Services spokesman, Philip Hale.

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