Postcode Porkies: 6.7 million drivers admit to lying to their insurer

More than 6.7 million motorists* in the UK - 16% of all drivers - are putting themselves and others at risk by providing false information on their car insurance forms, according to new figures from temporary car insurance provider, Tempcover. 

And while stretching the truth is a tried and tested technique for some - from exaggerating on a CV for a new job to bending the rules to get a child into a good school - even a seemingly harmless fib on a driver’s car insurance form could leave motorists left without a safety net in the event of an accident, risking the very thing they thought they were protecting. 

The new research of 2,000 drivers reveals that the practice of ‘postcode porkies’ and other deceptions is leaving millions vulnerable to having their policy voided in the event of a crash. Of the drivers who admitted to lying, the most common fib was about the car's overnight parking location (22%), for example, by claiming to have off-road parking or a private garage.

Amongst those who confessed to misinforming their insurer, one in ten respondents also admitted to providing a false home address (13%). Among those that gave a wrong address, two-fifths either used a previous home address which they have since moved from (41%) or a work address (39%), while others made use of a loved one’s home - such as a partner (24%) or their parents (20%), while some (7%) even went as far as using a random address. 

These postcode porkies are being used deliberately by some to get cheaper insurance rates, as a fifth say they gave the wrong address on purpose to reduce premium costs (20%). Nearly half also confessed they don’t think it’s technically a lie if their parents still live at the address (41%).

Other ‘Porkies’ 

It’s not just the address or overnight vehicle location either. Other fibs motorists admitted to include:

• Wrong mileage (20%) - Underestimating yearly mileage might seem harmless, but insurers use this data to calculate risk. Plus if you barely drive, this could make your premiums more expensive as insurers could see the lack of recent driving experience as a risk too.
• Incorrect driving history (16%) - Failing to report crucial details, such as points on your licence or past convictions, can affect the premium but also risks invalidating your policy, especially during a claim. 
• Fronting (15%) - This is when an older, more experienced driver is listed as the main policyholder on a car they don’t primarily drive. It’s often done to secure lower premiums for younger, less experienced drivers. This practice is illegal and will invalidate the policy.
• Failing to declare modifications (14%) - From tinted windows to fancy alloy wheels, modifications can change the value and risk profile, so they must be declared accurately to your insurer.

However, the study also uncovered a range of reasons behind the dishonesty including honest mistakes. Among those who provided incorrect information by accident, a quarter (25%) didn’t realise the information was wrong and the same number made a typing error, while more than a fifth (21%) miscalculated their vehicle usage, and 20% forgot to update their personal details about moving or changing jobs. 

The real cost of a fib

If an insurer discovers inaccurate information, they have the legal right to cancel or void the policy entirety. In fact, two-fifths of motorists who admitted to giving the wrong information (39%) have been caught, and of those, only a tiny 7% said nothing happened as a result.

Drivers who are caught face serious consequences:

• Legal action: Driving without valid insurance is a serious offence that can result in fines of up to £300, 6 penalty points, and potential disqualification. Of those caught, 44% received a fine, 33% were given penalty points on their licence, and 17% were disqualified from driving. 5% were even taken to court and received a criminal conviction.
• Future insurance problems: Nearly a fifth (17%) of them were refused insurance in the future or found it harder to get covered.
• Higher premiums: A voided policy can cause motorists to be viewed as high-risk, which significantly increases the cost of future insurance. Among those who were caught, 15% had to pay higher premiums afterwards and 11% were forced to repay costs to the insurer.
• No payout: The insurer can reject a claim, leaving the driver personally liable for their own or any third party’s damages, which can run into the thousands.

Claire Wills-McKissick, a temporary car insurance expert at Tempcover explains why motorists need to be honest: “Insurers use your details - from your address to your driving history - to create a risk profile, and even a little white lie can break that trust and lead to a voided policy. This then leaves you without the safety net you thought you had, and without cover when you may need it most. 

“There are plenty of legitimate ways to cut the cost of your insurance without bending the truth. These include adding a named driver, improving your vehicle’s security by adding anti-theft devices or securely parking it in a driveway or garage overnight.” 

“It’s also worth having a think about whether an annual policy is the best option for you. If you only borrow a car occasionally, temporary car insurance is a great alternative. It’s a pay-as-you-go model that allows you to get cover for the exact time you need it, from an hour to a few weeks. That way, you're only paying for insurance when you’re actually driving, and keeping your policy valid too.”