This news from The Green Insurer will come as no surprise to anyone working in claims back in the crash of 2008-09. Hard times forces people to take risks and make tough choices; heating vs eating, car insurance vs a family holiday and yes, some premiums are at family holiday levels now. So launching interest free PAYG policy products is really needed right now, because spreading the cost monthly, without penalising the working poor, is arguably the most ethical thing the insurance industry could do right now. Just saying.
Here’s the word;
The cost of living crisis and the rising cost of motor insurance is encouraging UK drivers to be economical with the truth when applying for policies, finds new research from The Green Insurer. Over a quarter (28%) of UK motorists surveyed admit to stretching the truth in order to reduce their car insurance premium. The biggest fabrication, admitted by 21% of drivers, was to understate their annual mileage.
Other fibs include saying that a car is kept in a garage when not in use, stated by 6% of drivers, and falsely claiming to have an immobiliser for their car, reported by 3%. Drivers also admitted to claiming they had a lower risk occupation or stating that their car was not used for work when it is.
A minority of motorists are likely to continue making false claims on their applications for policies, especially now that premiums are on the rise. Almost a fifth (18%) say they would be tempted to stretch the truth in future in order to secure lower premiums.
When asked what they would be most likely not to tell the truth about, mileage and the use of a fictitious garage were mentioned by 16% and 5% of motorists respectively. Drivers aged 65 and over appear to be the most honest when applying for cover, with 83% saying they would not provide false information, compared to just 63% of 18-24 year old drivers.
Younger drivers who had provided false information when applying for a policy are also more likely to have had a car insurance claim rejected or scaled back because they were found not to have told the complete truth. While almost a third (31%) of 18-24 year old drivers surveyed said they had a claim rejected on this basis, no drivers aged 55-64 and 65+ age groups had been refused a payout because they had provided false information.
The Green Insurer has launched car insurance policies that customers can buy direct from its website at http://www.thegreeninsurer.com and through leading price comparison websites.
A customer’s Green Driving Score will be used to calculate their reward points and will also affect their renewal premiums, with discounts for people who drive in a fuel efficient way. Policies are linked to a mobile app, which monitors how customers drive.
Every mile driven by customers will be offset using a range of carbon offset projects which are assessed for their carbon and environmental effectiveness as well as the social impact on the people and communities where they are based.
Paul Baxter, CEO, The Green Insurer, said: “Lying to secure lower insurance premiums is never a sensible idea, because as our research shows, the more likely people are to provide false information, the more likely they are to have insurance claims rejected or at least scaled back.”
“Of course it can be challenging to pay for motor insurance premiums, especially for younger drivers who are offered higher prices because of their relative inexperience. But a better idea is to avoid stretching the truth altogether and instead choose a policy that exchanges lower premiums for careful driving – and helps protect the environment at the same time.”
All customer enquiries to The Green Insurer will be dealt with by humans based in the UK rather than chatbots or overseas call centres.
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