Many people are putting their insurance cover at risk by not providing accurate information when applying for insurance.  Sainsbury’s Finance’s new research⁽¹⁾ found that 1.12 million people admit to having knowingly given false information and 12.59 million people admit to making a best guess at information when taking out insurance cover. As a result, the Bank is urging people to make sure that the details they provide are accurate, and if unsure as to exact details, to take time to check.  Whilst most insurers will demonstrate leniency if the inaccuracies are unintentional, at worst the provision of false information can make an insurance policy invalid.

Home insurance topped the “dishonest” list, with 18% of people admitting to having given false information⁽²⁾.  This was followed by car insurance with 15% of people confessing to having given false information and travel and pet insurance with 12% and 4% respectively.

The research revealed that people have different reasons for providing misinformation when taking out insurance.  However, the overriding reason, given by 11% of people is that they didn’t have time to check the correct information whilst in the process of providing details. This excuse is followed by the explanation that it takes too long to gather or research accurate information (8% of people), and the desire to get a cheaper premium or save money (4% of people).

The most diligent age group was seen to be the 16-24 year olds, with only 15.2% admitting to giving inaccurate information when trying to get a quote or buying cover.  Somewhat surprisingly the over 65’s were the most likely group to admit to giving inaccurate information, with 32.5% saying they had either knowingly given false information or made a best guess when trying to get a quote or buy cover.

Steve Johnson, Head of Insurance at Sainsbury’s Finance said: “It really is quite concerning that so many people seem to think it doesn’t matter if they take a guess at the information requested at the point of taking out cover.  Although it may seem like a good idea in an effort to save time, it could become a real headache later when they find they have invalidated their claim.

“If unsure of the answer to a question when getting a quote or buying cover we would encourage people to always take the time to go back and check any details, you can always phone back or gather all your personal documents together and apply online, in some cases you can retrieve online quotes and modify them later.”

Around the UK, those in Scotland are the most likely to give inaccurate information when taking out cover.  The most diligent or “honest” group of people are to be found in the West Midlands.

⁽¹⁾ GfK NOP interviewed 1000 UK adults between 8^th-10^th February 2008.

⁽²⁾ “giving false information” refers to both those who admit to knowingly giving false information and those who have made a best guess if unsure about exact information.