AA Car Insurance is warning motorists not to lie when buying car insurance as being “economical with the truth” could cost them thousands of pounds.
According to research carried out by the AA, the number of claims refused by insurers due to people giving false information when they take out insurance has risen by almost a third in the last six months. The AA has estimated that insurance fraud adds nearly £30 per month to the cost of innocent motorists’ premiums as providers have to cover their costs.
Simon Douglas, director of AA Car Insurance, said: “Not telling the whole truth amounts to fraud and can result in your cover being voided, possible prosecution and potentially thousands of pounds in costs, especially if there are injuries involved.”
A recent study conducted by the AA revealed that motorists who are caught using their mobile phones while driving will probably also see an increase in their insurance costs .