The AA is warning motorists to be very careful when arranging insurance cover as there is evidence that insurance companies are hardening their attitude to settling claims.
“It is absolutely essential that you are fully honest and truthful when taking out car insurance,” said AA director of policy Conor Faughnan. “Otherwise you risk losing all or part of your cover in the event that you do have to make a claim.”
In the context of very high motoring costs, many motorists are seeking to drive their price down and it appears that some are tempted to tell the insurance company what they think they want to hear.
“This may reduce your premium but is very much a false economy,” warned Mr Faughnan. “An insurance company is within its rights to deny part or all of your claim if you have been less than completely truthful. In previous years you were more likely to get away with it but there is evidence that this year insurance companies are taking a much harder line. Expect any claim to come under much closer scrutiny than before.”
Mr Faughnan added that insurance companies maintain a shared database, called Insurance Link, on which details of all claims and claimants are maintained.
“You might think you’ve got away with it when you receive your insurance cert but that won’t help you when it comes to making a claim. The temptation is not to mention you have received penalty points since last year, or to forget about a previous claim when giving your details. The AA urges all motorists to resist the temptation and to disclose all details fully.”
Certain measures can be taken to validly drive down insurance costs, Mr Faughnan added. “For example, it might be possible to reduce the insured value of your car. Prices for cars have fallen in 2010, and your valuation may be unrealistically high. You might also consider restricting the number of drivers on your policy, and by doing so you may receive an additional discount. A young adult in the home may be named on your policy while they are actually away in college or may just not need to drive the car. Removing their names may help get your price down.”
He suggested that motorists should talk to their insurers and seek advice. “But do not make the mistake of telling little white lies as you will surely come to regret them,” he warned.
