Giving car insurance firms fake information is false economy

Thu, 04 Aug 2011

Those who give their car insurance provider fake information to try to save on their premium are likely to find it a false economy.

According to GoCompare.com, doing so can "leave you severely out of pocket" as this money-saving scam will often "backfire" if a claim is made.

"Not being clear with your insurer about who is the main driver is a breach of trust, and technically fraud," explained business development director John Miles.

"If caught, insurance companies may cancel your policy or charge the correct premium as a lump sum and they can also refuse to pay out for claims."

The expert added that parents should not front a policy for their child as it will benefit the younger driver in the long run if they have their own deal and build up a no-claims bonus.

Research from the firm shows that car insurance for 17 to 20-year-old males now costs an average of £4,006 per year for comprehensive cover .
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