Industry News from Yes Insurance

Motorists may find their car insurance does not offer protection when they need it most if they lie to their provider, it has been claimed.

The Association of British Insurers (ABI) issued this warning after they discovered the number of fraud cases appears to be on the rise.

It stated providers were uncovering more instances where customers have cheated - or failed to disclose important information - in a bid to secure cheaper premiums.

The group said one common deception involved parents adding a child to a motor insurance policy as an occasional user, when the son or daughter is actually the sole or main driver of the vehicle in question.

Nick Starling, ABI's director of general insurance and health, said: "Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences."

He concluded: "Honesty is the only policy."

Last month, ABI called on road safety groups and the government to help to reduce the number of whiplash-related car insurance claims.

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