Many car insurance companies have come out in support of the Association of British Insurers after the industry body’s bid to make driver information more accessible.
In an effort to keep car insurance rates down, the ABI has urged more driver information be disclosed to insurers to counteract motorists purposefully giving false information to procure cheaper car insurance. The industry body recently reported that many drivers are jeopardising their insurance cover by doing so.
Many insurers have come out to support the ABI’s request for access to more driver information. Insurer Swiftcover’s claims director Robin Reames stated that the firm would like to provide discount car insurance for their honest customers. However Mr Reames said that when some applicants answer untruthfully in regards to their driving history, his firm needs to factor that possibility into the cost of every quote the insurer issues. This ultimately results in premiums being driven ever higher to cover the increased risk.
Mr Reames agreed with the ABI that insurers should be given access to vital driver information to aid in the disclosure of any discrepancies. Doing so will enable the firm to give each individual an accurate quote, which could result in a reduction in unilateral reductions in insurance rates.
Mr Reames stated that Swiftcover is so fully committed to the proposed procedure that it will be officially making its support known to the Transport Select Committee. The firm would welcome any decisions by the government or the motor insurance industry to implement such measures in an effort to bring down premiums for honest drivers in the UK, he added.
Industry experts agree that such a scheme may very well reduce insurance rates for honest drivers. However the cost of premiums is affected by several different factors besides the veracity of personal information given to insurers, many caution.