Young drivers worst for lying about their motor insurance

Young drivers are the most likely to lie about their motor insurance, according to the latest research from Lexis Nexis Risk Solutions, with more than half (53%) of drivers aged 18-34 saying it is ok to omit or adjust information relating to their motor insurance. This figure falls to less than a third (31%) for drivers aged 55 and above, and 43% for all drivers.

Shockingly, more than one in four (26%) young drivers even think it is ok to intentionally damage or abandon a vehicle in order to claim for a total loss.

Lexis Nexis Risk Solutions senior director of motor and telematics, insurance Martyn Matthews says the problem is getting worse, and that insurers need to do more in order to educate their customers about the impact of such fraudulent activity.

“We have seen an increase in the number of people thinking it is ok to make omissions,” he says. “It is younger drivers in particular who are more likely to omit information, and insurers need to work with these drivers to help them understand what their insurance obligations are, as well as the consequences of not telling the truth.

“It is all about educating the consumer of the impacts of misrepresenting or not being entirely truthful about what happend with their vehicle, as well as why it is important and why insurers need to know this information.”

Fraudulently using no claims bonuses on multiple vehicles was the most common form of lying about motor insurance, the research found, with reporting damage being caused as a hit-and-run, rather than being caused by the policyholder, the second most common (see below).

Matthews says one of the drivers behind this behaviour is a lack of trust in insurers, with 59% of all consumers thinking insurers consistently charge too much for motor insurance, as well as a lack of engagement from the leading brands.

“The level of communication an insurance customer receives is still quite low, and that usually only occurs when someone takes out a policy or if something happens requiring a change in the policy or at renewal,” he says. “There are opportunities out there for insurers to engage more with their customers, and one way to do that, particularly with younger drivers, is telematics.

“Telematics is a fantastic way of engaging with customers and at the same time educating them as to the benefits of safer driving, and it is also a great way of improving transparency.”