Common lies exposed include forgetting to disclose previous claims or unspent convictions when asked
Insurers uncovered 212,000 attempted dishonest motor insurance applications in 2014, up 18% on 2013 and equivalent to just over 4,000 every week, according to research from the ABI.
The ABI said this meant that thousands of motorists were paying a high price by cutting corners when buying motor insurance.
Common lies exposed include forgetting to disclose previous claims or unspent convictions when asked, giving false address or post code for a lower risk area, and parents insuring in their name a vehicle being mainly driven by their son or daughter.
Last year more than 1,500 reports to the Insurance Fraud Bureau’s (IFB) cheatline related to motor insurance application fraud – nearly a quarter of the total calls received.
The ABI has also warned against ghostbroking scams – advising policyholders to avoid policies sold on social media networking sites, pubs, clubs and newsagents.
The IFB is currently dealing with 26 cases of ghost broking fraud.
ABI fraud and financial crime manager Mark Allen said: “Insurers recognise that innocent mistakes and oversights happen. But anyone lying to get cheaper motor insurance, or tempted by cheap insurance offers without first checking that they are genuine, risks driving illegally.
“Industry initiatives, such as the Insurance Fraud Register, My Licence that allows insurers to check for any motoring offences, and the work of the IFB and the Insurance Fraud Enforcement Department (IFED) in tackling ghost brokers are helping to reduce the scope for insurance application fraud.”
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