We all want to save money, and we all want to save money on our car insurance. Car insurance if you want to drive on UK roadways and motorways is mandatory by law. Drive without insurance and if caught, you will not only face a fine, but your car will be seized.
So in looking for ways to save money on our car insurance, which the insurance premium can be a large portion of our monthly budget, many of us will try just about anything. Including one insurance saving trick, that is in essence fraud.
When you look at the expense of owning a car, the insurance is one of the most expensive aspects.
And when you look at the word fraud, it is not a pretty word, it has such an ugly connotation to it.
Let’s have a quick look at ways you can save money on your car insurance, and which one of these is basically fraud.
Ways to Save on Your Car Insurance
These are just a few ways to try and save money on your car insurance:
- Raise Your Excess: By raising your excess amount, the amount you have to pay should you file a claim, can reduce your overall insurance premium. However, it also makes you responsible for that higher excess amount should you need to place a claim.
- Buy The Right Car: This means buying a car that has a lower insurance premium in the first place. No sporty models, or models that Top Gear cannot wait to get out on the track. Be a “star in a reasonably priced car”.
- Limit Your Mileage: This has been a great way for people to save money, especially in the past year when so many people are working from home. If you only drive 3,000 miles a year, let your insurer know this. The lower your mileage, the lower the risk of an accident, and the lower your insurance premium.
- The Right Policy and Coverage: Making sure you have the correct coverage for your driving needs, and not a lot of “bells and whistles” can save you money. Also, for some a multi-car policy can save them money.
- Your Post Code: Your post code can determine what your insurance premium will cost, some post codes are much higher than others.
So now I know what you are thinking, I’ll use a cheaper post code for my insurance, maybe my parent’s post code, maybe my Uncle’s, or maybe my friend’s.
You are now on a slippery slope called fraud. Yes, using a different post code than where you live, and where the car will be stored at night, is in essence fraud.
Can a Claim Be Denied Due to an Address Change?
The answer here is possibly, and probably yes.
Insurers want to know where the car is parked or stored each evening. Storing a car off the street in a parking pad or a garage, can possibly lower your insurance premium.
If you live at address A and state the car is always at address B, when it is not at address B, but at address A with you, that is not telling the truth to the insurance company. Should you need to file a claim for any reason, even an accident that was not your fault, and the insurer finds out about the address change, it is a reason to deny the claim.
You frauded your insurance application, and in a pre-meditated way as you set out from the beginning to hide the correct address.
But suppose you legitimately live at one address and your car is stored at another, say you live in a city and don’t need the car, and you leave it at your parents, or another place.
Tell your insurer this, let them make the determination on pricing the policy based on this information.
Being transparent and upfront with the insurance company takes away any surprises later.