- Bessie Hassan
- Head of PR & Money Expert
- finder.com.au
- +61 402 567 568
- Bessie.Hassan@finder.com.au
Media Release
1 in 6 drivers have lied on their car insurance application
- Gen Z are the most likely to fudge the facts on their form
- The overnight location of a vehicle is one the most common lies
- How to lower the cost of your car insurance premium
08 September 2020, Sydney, Australia – Thousands of Australians are at risk of having their car insurance claims rejected, according to new research by Finder, Australia's most visited comparison site.
A recent Finder survey of 768 Aussie car insurance holders revealed that a concerning 13% have lied on their car insurance application.
Gen Z drivers are the worst offenders, with one in three (32%) admitting to being dishonest on their car insurance application, compared to just 3% of Baby Boomers.
Taylor Blackburn, insurance specialist at Finder, said that when it comes to your vehicle, honesty is the best policy.
"Lying on an insurance application can be an expensive mistake that can come back to haunt you.
"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," he said.
The survey also found that a vehicle's overnight location is one of the most common insurance lies, with 4% of insurance holders falsely claiming that they park their car in a garage overnight.
A further 4% have failed to list a driver on their policy, with that same number omitting details of previous minor accidents on their application.
Blackburn urged drivers to double-check their details before submitting 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.
"If you feel you're paying too much for insurance, shop around for a better deal instead.
"By comparing your options, you might be able to find an insurer offering a reduced premium based on your driving habits, or a cheaper price overall," he said.
When it comes to your car insurance policy, have you ever been less than truthful about the following?
| Response | Proportion of Aussies |
|---|---|
| Where your car is kept (e.g. garage instead of street) | 4% |
| Additional drivers | 4% |
| Being involved in a minor accident | 4% |
| Previous car accidents, claims or damage | 3% |
| Your occupation | 3% |
| How your car is used (e.g. saying business purposes when it's for personal use) | 3% |
| How much you drive the car | 2% |
| Age of your driver | 2% |
| Your address | 2% |
| Previous offences/conviction | 1% |
| I haven't lied on my application | 87% |
How to lower the cost of your car insurance premium:
- Switch insurers. Finder analysed over 300 quotes from 42 car insurers and found that the average cost of cover ranged from $626 to $2,979 a year. That's a huge potential saving of $2,353 – just by switching insurers.
- Pay a higher excess. This will reduce the cost of your premium. But you'll need to make sure sure you'll be able to afford the higher excess amount in the event you need to lodge a claim.
- Limit insured drivers. If high-risk drivers such as learners or under 25s won't get behind the wheel of your car, this can also lower your premium. But keep in mind that if your car is damaged with a restricted driver behind the wheel, you won't be covered.
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For further information
- Bessie Hassan
- Head of PR & Money Expert
- finder.com.au
- +61 402 567 568
- Bessie.Hassan@finder.com.au
Disclaimer
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
About Finder
Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.
Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.
We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.
12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel