One in six drivers has lied on their car insurance application, leaving them at risk of having their car insurance claims rejected, according to the latest report by Finder.
Its survey of 768 Australian car insurance policyholders revealed that 13% of drivers have lied on their car insurance application. Gen Z drivers were the main offenders, with one in three (32%) admitting to lying on their application compared to only 3% of Baby Boomers.
“Lying on an insurance application can be an expensive mistake that can come back to haunt you,” said Taylor Blackburn, an insurance specialist at Finder.
“Consequences range from having your policy cancelled or your claim rejected to being sued for insurance fraud. It might not seem like a big deal to say your car is under a covering when it isn’t, but the repercussions can be significant.”
A vehicle’s overnight location is one of the most common insurance lies, with 4% of policyholders falsely claiming that they park their vehicle in a garage overnight.
A further 4% have failed to list a driver on their policy, with the same number omitting details of previous minor accidents on their application.
“Failing to declare certain information in your application is considered non-disclosure. Whatever your intent, providing false information for any kind of insurance is likely to catch up with you,” Blackburn said.
