Car insurance policies may be invalidated if drivers lie about having a no claims bonus

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

Drivers may deliberately forget to include a range of previous accidents when applying for cover which could later backfire and cause some firms to cancel a policy. Invalidating an agreement could force drivers to pay for their own vehicle repairs in the event of an accident.

Meanwhile, some drivers could be put onto a blacklist which would stop them from securing high street insurance in the future in a major concern.

In some extreme cases, car insurance firms could prosecute the drivers for fraud meaning an applicant could even end up in court.

Experts warn that “honesty” was vital when securing their insurance cover as firms can easily check reported incidents via a database.

Specialists at Quotezone also warn that providers will ask for proof that no claims discount exists before processing a cheaper claim.

This makes it impossible for road users to get away with lying about the length of their no claims bonus in a desperate attempt to bring down costs.

Greg Wilson, a spokesperson for Quotezone, told Express.co.uk that telling insurers the truth was “the best policy”.

He said: “While some motorists might be tempted to inflate their no claims in order to lower their quotes, honesty is definitely the best policy.

“Not only are insurance providers able to validate a policyholder’s claims history and check records of reported incidents via a central insurance database known as CUE, but if you’re ever involved in an accident your provider will ask for proof of your no claims discount before they’ll process your claim.”

DON’T MISS
Car insurance experts reveal five-point plan to make savings [INSIGHT]
Car insurance customers should not head straight to comparison sites [ADVICE]
Drivers can save £67 on their car insurance by updating these details [ANALYSIS]

His comments come after new research from Quotezone has revealed that more than 10 percent of motorists have built up a no claims bonus of more than 20 years.

They warn that this means around 3.4million drivers across the UK could be benefiting from significant discounts on their insurance premiums.

They say that drives without a claim for 20 years could be liable for savings of between 50 and 60 percent.

At least a third of road users have around 10 years no claims bonus while half have at least five years so could still be set for some smaller discounts.

Just 20 percent said they did not have any form of no claims agreement because they had made a claim over the last 12 months.

Consumer watchdog Which? has revealed that some drivers could make savings up to 75 percent on their premiums building up a no claims bonus of around nine years,

They say that maximum discounts can range from around 40 percent to 80 percent depending on the length of the bonus.

Speaking to Express.co.uk, Mr Wilson said drivers may “not be aware” of how much they could save.

He said: “Most drivers know that the size of their no claims discount can affect the premium they have to pay for their car insurance.

“But unless they’ve built a very sizable discount themselves they might not be aware just how much 10 years’ or 20 years’ no claims can help bring the cost down.

“What this research does highlight, though, is the significant upsides of building up a genuine no claims bonus.

“Not only does driving safely and obeying the rules of the road help to keep everyone safe, but it can often translate into much cheaper insurance as well.”

Source: Read Full Article