Are rising car insurance costs making drivers lie?

By Tom Farley, Thu 5 Aug 2010 - Published in Car Insurance

Increasing car insurance costs could be pushing more drivers to lie when taking out cover, research has suggested.

A report published by Confused.com pointed out that car insurance premiums have risen by 31 per cent over the past year and claimed that 38 per cent of motorists admit to bending the truth to obtain a cheaper price.

The poll found that 14 per cent have lied about their annual mileage, eight per cent have misled a provider about where they keep their car and seven per cent have not disclosed the true value of their vehicle.

Will Thomas, head of motor insurance at Confused.com, said: "When it comes to motor insurance, lying really doesn't pay. By failing to tell the insurance provider your true circumstances you are risking invalidating your cover entirely."

He also claimed that car insurance providers are becoming more attentive to fraud and advised drivers to find legitimate ways of bringing down the cost of their cover.

Last month, the British Insurance Premium Index showed that car insurance premiums are rising at their fastest ever rate in the UK, driven by fraud.

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