Fudging a few details. Exaggerating your claim. Forgetting to mention something ‘minor.’ It might not feel like fraud, but that’s exactly what it is. And insurance fraud, no matter how small, can have big consequences.
The consequences we’re talking about aren’t only going to affect the person committing the fraud… They affect everyone.
Let’s talk about the real cost of insurance fraud, what it really means, how it affects your premiums, and what to do instead if you’re struggling to stay covered.
What’s insurance fraud?
Most of us think of insurance fraud as arranging for a car to be stolen or setting fire to property, and those 2 examples are acts of insurance fraud (among other things). But those are extreme examples. Insurance fraud is any false or misleading info given to us as your insurer for the purpose of gaining some kind of financial benefit that you wouldn’t otherwise be entitled to.
Here are some common examples:
- Exaggerating the value of lost or stolen items.
- Claiming for something that didn’t happen.
- Omitting key facts (like regular drivers, prior accidents, or parking info).
- Staging an accident or loss,
- Failing to disclose true and complete information.
Let’s talk about the consequences
If you do unintentionally (hey, it happens) or intentionally commit fraud then there are a few things that can happen.
Firstly, and something most people don’t think about for even a second, is that fraudulent claims push up risk levels and costs across the board. This means higher premiums for honest clients.
It’s not just the insurer who pays. It’s everyone.
And then there are the consequences that you would face. These range in severity, and what happens depends on what an investigation throws up. If fraud is suspected, depending on what kind of fraud it is will determine the consequence.
The risks you face:
- Claim rejection: Your claim can be denied, even if parts of it are legit.
- Policy cancellation: Your cover can be cancelled immediately.
- Blacklisting: You may struggle to get cover from any insurer in the future.
- Legal action: In serious cases, insurance fraud is a criminal offence.
Avoid it at all costs, here’s how
Incorrect details = incorrect cover = no cover, so to the best of your knowledge, always give us accurate and up-to-date info. If you don’t understand the question, let us know. We’re here to help you build an accurate policy and we’d rather make sure we get it right.
You might not even realise how important some of the info is, so go on. Over share. Tell us everrrrrrything. And if anything changes in your life, tell us. We want to help you get the best cover suited for your needs… And a premium that suits your budget.
Our last 2 reminders are to 1) make sure that you note the correct regular driver, uses, and locations of your car and 2) keep receipts and records for any high-value items that you’ve insured with us.
The king has your back
Honesty is always the best policy, especially when it comes to your insurance. Fraud isn’t just unethical, it’s expensive, and it can leave you without cover when you need it most.
Rather ask, check, and update your policy often.
Remember, we’re here to help, not catch you out.
Click here for a commitment-free insurance quote or you can WhatsApp us on 0860 50 50 50