When it comes to insurance everyone lies, including insurers


Car insurance companies might be quick to point the finger at consumers for being dishonest, but it looks like what’s good for the goose is good for the gander.

The Association of British Insurers fired the opening salvo this week when it revealed the results of figures from 2013 that claim car insurance providers in the UK received more than 180,000 fraudulent applications. That works out to something like 3,500 a week and covered such instances as neglecting to reveal unspent motoring convictions or previous claims.

Now I’m not going to sit here and defend that type of behaviour – it’s dishonest and it’s certainly fraudulent on a technical level. Pulling a stunt like that can get your motor car insurance invalidated, and if that coincides with a road traffic accident you could be seriously up the river. In other words, it’s a bad, bad idea so don’t do it!

Meanwhile, insurers aren’t blameless when it comes to obfuscating the truth or trying to pull the wool over people’s eyes. In fact, research from Fairer Finance, a consumer rights group, was published this week that revealed that plenty of providers are trying the old bait-and-switch, especially when it comes to consumers who reach insurers through car insurance comparison sites.

Insurers have been known to offer monthly pay policies to these customers even as they specify from the beginning that they’re looking for an annual pay policy in an effort to wring more cash from these customers. Up to one out of three insurers were found to still try this tactic even today, and that’s enough to get anyone’s blood boiling don’t you think?

In other words, insurers complaining that consumers aren’t being honest with them might technically be true, but it’s not as if insurance providers are being honest with consumers either. I don’t rightly know which one led to the other, as it sounds like the old ‘chicken or the egg’ dilemma, but whatever the original impetus it’s obvious that neither group is free from blame. In other words, the insurance industry can take their self-righteous outrage and chiding lectures and jog on. Maybe if insurers provided better levels of service in the first place consumers wouldn’t feel like they have to lie in the first place, eh?

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