Duck2water guide to insurance fraud

Insurance fraud is on the increase as motorists search for the cheapest car insurance to try to save money in the economic downturn.

Duck2water has produced this guide to the types of fraud prevalent in these credit crunch times to educate drivers thinking about being economical with the truth when applying for cover.

Honesty is the best policy by far because the whole point of insurance is to cover the costs for a potential future loss. Supplying false information to insurers runs the risk of invalidating insurance policies, and thus ends up being a false economy, even in these credit crunch times.

Main areas of car insurance fraud

No Claims Discount (NCD)

Motorists try to claim more years of NCD than they are entitled to, sometimes in error but also some drivers try to hoodwink insurers.

False or double addresses

Providing a false address where a vehicle is not kept would invalidate insurance for car drivers - but people do this because a lower risk postal address can reduce premiums. Cars must be registered at the address which is the main residence.

Failing to declare crashes and convictions

Declaring convictions and accidents is vital. Millions of drivers have convictions for various motoring offences. A quick licence check made by an insurer before processing a claim is all it takes to uncover any misinformation. In addition, accident details are stored on insurance industry database systems which can also be checked.

Annual mileage

To keep down car insurance quotes, motorists are known to state they drive considerably fewer miles than they actually do, although many sometimes misjudge this by accident.

Fronting

People sometimes commit insurance fraud when the main driver on a policy is a young motorist but the insurer is told a parent or another older person is the main driver. The young person is then not fully declared for insurance purposes, perhaps leading to a claim being made invalid. In addition, they can not build up any no claims bonus.

Supply wrong information

Blatant - and seemingly plain stupid - attempts to secure cheaper insurance include supplying incorrect details such as wrong car, omitting vehicle modifications, wrong sex, wrong age and wrong payment methods.

Successful applications for cheap car insurance

The message to be instilled by this guide is that it is not worth massaging any details and gambling with cover to get the cheapest quote. Far better to avoid fraud and complete applications accurately and correctly rather than lose out should a claim need to be submitted during the policy period.

Duck2water specialises in great value cover for all UK motorists. It only takes a few minutes to apply for a quote with us. Before very long, you will be enjoying the cheapest car insurance around.

For more information, please see:

• Why choose duck2water?
• How to buy online
• Breakdown cover
• Glossary
• Customer testimonials

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