Don't cut corners for cheaper car or van insurance.
Chris Hogan, 4th January 2016, Motor
We want to give you the best possible deal for your car or van insurance but it's important to make sure you have the right cover, and it's legal. The Association of British Insurers (ABI) has discovered that cutting the wrong corners on motor insurance is costing some UK motorists thousands of pounds.
With a price comparison system like the one we offer UK motorists you can easily choose the best deal AND make sure the cover is correct - we take you through the whole process.
But many motorist are tempted to 'bend' the truth to save a few pounds here and there - the bad news is that insurance companies are getting better and better at finding people out. The costs are high - claims will be refused and drivers can be prosecuted for driving without insurance, being fined, having their licences endorsed and even having their car or van seized and crushed.
Dishonest applications
ABI research shows that in 2014 (the most recent year that figures are available for) insurers uncovered 212,000 attempted dishonest applications for motor insurance, up 18% on 2013 and equivalent to just over 4,000 every week.
Sometimes people fail to disclose previous claims or endorsements, in other cases the wrong postcode is given. A particular problem is known in the trade as 'fronting', where an older adult insures a car with a younger person as a named driver, where in reality the car will be mainly used by the younger person.
The second problem
The other main cause of being uninsured is harder to avoid - the growth of so-called 'ghost brokers'.
These days it's easy to set up an official-looking company with a website and find customers through social media. Other ghost brokers sell from pubs, clubs and university car parks. They'll take money for a premium but there'll be no policy - the documents will be false.
Victims of ghost brokers often don't find out until they are in accidents or have their vehicles stolen. It's only when they file claims that they discover their policies don't exist.
Some ghost brokers DO register a policy but don't declare the details properly in order to get a cheaper premium and secure your business. So although you'll have a policy it won't have the cover you thought you were buying and the details will be incorrect so the insurer will invalidate the insurance.
Check it out properly
To avoid this, go through a reputable broker. You can check that any broker is registered to sell motor insurance through the Financial Services Authority register.
Now you can also check if a vehicle has an insurance policy too. This means you can check that you have been issued a proper policy by entering your details at the askMID website.
But if you have an accident you can also check the policy details of the other vehicle, from a smartphone, right there and then. There's no app to download, just go to the askMID website and enter your email address and the registration numbers of your vehicle and the other car. If a valid insurance policy is found you'll get notification onscreen and in an email.
Safer ways to save money
The ABI recommends the following steps to find the lowest premium without compromising your protection:
- Shop around - try Insure My Vehicle or phone us on 01608 648421.
- Lower your risk - if possible fit an immobiliser, keep the vehicle garaged or on a driveway or consider a telematics-based policy.
- Opt for a higher voluntary policy excess.
Whoever you choose to insure your car or van with we hope you get the right policy and don't have any nasty surprises.
Related articles
Monthly Newsletter
Not signed up to our monthly newsletters and would like to keep up to date with a variety of products? Select from below which products you would like to receive.
No Product! Please select a product