Motorist cavalier about endorsements
Motorists are being warned that they can invalidate their car insurance by not revealing details of convictions.
In a survey by Confused.com, the price comparison website, 21% of car owners admitted that they would not immediately inform their insurance company if a motoring offence led to their licence being endorsed.
This suggests that a quarter of all drivers believe it is acceptable to withhold information to help lower car insurance premiums.
According to the survey, 96% of motorists are nevertheless aware that if they do not disclose details of motoring convictions, they could invalidate their insurance.
Changes in job title or annual mileage should also be passed on to insurers as these can significantly affect premiums.
Debra Williams, managing director of Confused.com, believes that in the worst case scenario motorists not advising their insurers of changes could find themselves answerable to the police and get a record for fraud.
In addition, Sainsbury’s Bank has reported that the average cost of car insurance purchased online increased by 2.9% between December 2006 and July 2007.
However, the market is set to change in 2008 as some motor insurers have been subsidising premiums using profits from their reserves, in order to keep market share in a highly competitive environment.
This is unlikely to continue in the wake of this summer’s flooding, which has left insurers digging deep to pay out claims.
Category: Car Insurance News
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