Admiral is warning motorists to tell the truth to their insurance company or risk losing their cover.
According to Admiral, 10 % of motorists lie to their insurance company when they insure their car in order to get themselves a cheaper quote.
Anyone who is found lying to their insurer runs the risk of having their insurance cancelled.
Admiral managing director, Sue Longthorn, commented: "Some people think that by telling a small lie they can get a cheaper quote. In reality they are committing fraud. An insurance policy is a legal contract so it's vital that you are honest, or that contract can be claimed invalid and cancelled."
Admiral has compiled a list of the five most common ways people lie to insurers, these are:
1. Customers withholding driving convictions.
2. Not informing insurers of modifications to a car which affects its performance or appearance.
3. Insuring a young person's car in the name of an older driver.
4. Withholding previous claims.
5. Unacceptable licences.
