Cost of Living and Motor Insurance

Unless you are extremely fortunate, you would have felt the impact of the global financial crisis

, and the hardest place hit? Your wallet! Because the cost of living is increasing, and yet our disposable incomes are diminishing, people are looking to save money in any way they can.

And one such way that people are looking to reduce costs is by purchasing cheap motor insurance. Unfortunately, many people are doing this by lying to their insurance companies about their life circumstances.

In the UK and Ireland, it is illegal to drive a motor car on a public road without adequate insurance; this means people must be insured to at least 3rd party cover.

However, a recent study has revealed that an estimated 38% of drivers have lied to their insurance company on their insurance documents.

The best piece of advice to those people considering this option for reducing their out goings is DO NOT do it. You are highly likely to get caught, and by doing so, you invalidate your insurance meaning that you are effectively driving without insurance, which is a criminal offence!

It may be that you have already lied to your insurers, or you may know of someone else who has. However, because of the recent financial crisis, insurance companies are now well aware of the tactics people use to get cheap car insurance, and are finding new and ingenious ways of catching people out.

The most common things that people lie about include: mileage, post code, claims, previous accidents, points on their licence, no-claims bonus.

However, there are other ways of reducing costs: getting a smaller car that falls into a cheaper car insurance bracket; building up your no-claims discount; adding security feature to the vehicle to make it more secure. In short, you do not have do anything illegal to reduce the cost of driving!

Cost of Living and Motor Insurance

By: Rochelle Martinez

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