As one of the biggest financial costs related to driving a car, car insurance can be an expensive purchase for many motorists, especially for younger drivers or those who have previously made claims. Many motorists try to minimise this cost by shopping around for their cover, as prices can vary from company to company. Getting a quote and comparing policies can seem quite complex, especially when it comes to supplying the insurer with all the necessary information on your vehicle and your personal circumstances. But it is vital to make sure all the information you do give to the insurer is correct. Inaccurate information or leaving vital details out from your application could mean you are driving illegally.
It is illegal to give a company false information in order to get a car insurance policy. But many people do, and often find themselves in trouble with the law as a result. One of the reasons people withhold information is because they believe it will save them money on their car insurance. The problem with this is that either deliberately or accidentally giving incorrect information about any aspect of your car could leave you in trouble with both the insurance company and the law.
One example is where motorists with endorsements on their driving licence find their premiums cost more, or are even refused cover for their vehicle by insurers. By not telling the insurance company they have got endorsements on their licence they will get a cheaper quote. But because the quote is based on incorrect information, this means the insurance is invalid and will not be accepted by insurance organisations or the police in the event of an accident.
When you buy car insurance, the insurance company will not be aware that you have given incorrect information. But if a claim is made on your insurance they might ask for documents to back up your original claim. If these papers reveal that your details are different from that on your policy, they are very likely to refuse cover. Not giving the right details when purchasing cover for your vehicle could be seen as fraud. You could also be prosecuted for fraudulently obtaining car insurance, and be liable for some very expensive fines. That original ‘expensive’ car insurance quote based on the correct information could start to look like a much better deal.
In a variety of situations you can be asked to show your insurance documents to the police. If you are unable to provide them with a valid insurance policy certificate they can press charges, as they can view this as you driving without insurance, and therefore driving illegally. The law in the UK says that it is a compulsory requirement for anyone who uses, causes, or permits a vehicle to be used on a road or other public space to have valid insurance against at least third party risks. This includes parking the car or even just leaving it on a public road. Allowing someone else to drive your car without the right insurance also counts as being against the law.
To avoid prosecution, expensive fines and bills, it is always essential to give the right information when applying for car insurance. Even if you give the correct information at the time of buying your premium, you must let the insurer know if any of those details change, or new information needs to be passed on, such as a modification to your car or if another person is to drive your car. Not all new circumstances could increase the cost of your premium, and if you are in any doubt about what information to give, it is always important to check with the insurance company.