Millions of drivers ‘on insurance tightrope’

Some 2.5 million drivers are taking a risk by using their car with invalid car insurance and six per cent of all cars on the road are not insured at all, new research reveals.

According to a study by uSwitch.com, over 750,000 car owners fail to declare driving convictions to their insurer, over 1.5 million drivers intentionally lie about basic details such as their address and five per cent of motorists lie about where their car is parked at night.

And the majority of people who bend the truth with their insurance policy know the risk they are taking, with three out of four poll respondents fully aware that providing false information could invalidate their cover policy.

Aron Thompson, head of insurance at uSwitch.com, said: "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."

If all of the drivers with potentially invalid policies had to pay for their insurance claims, it would cost them a total of £4.15 billion, according to the survey.

However uSwitch.com claims that false information on insurance policies is not always an intentional ploy, as many customers do not understand the questions they are asked.

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