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New Research Reveals Dishonesty Puts Security at Risk

New research reveals that 1 in 10 people lie on their insurance applications forms
Finance, Lifestyle - 28 September 2010   Download IconContent available for download:  
Audio | Interview with Dr Glenn Wilson and Matt Owen| Login to Download

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  News Hooks:

New research reveals that one in 10 people admit to omitting details when taking out car or home insurance in the hopes of lowering their premiums. Nearly a quarter (23%) exclude details of any previous insurance claims they’ve made, 15% lie about their age or where the car is kept and a further 12% conceal speeding convictions.

Men are more than three times as likely to omit information when it comes to their car insurance, despite 77% claiming that they are straight talkers. Young people aged between 18-34 are ten times more likely not to mention this information than those over 55.

Fraud adds an average of £44 to each premium taken out, meaning those who are honest end up paying more to cover dishonest policyholders. Despite this, 6% say lying and omitting information to insurance companies is not wrong and half of these believe it doesn’t hurt anyone.

. Introduction:

New research reveals that those who commit fraud on their insurance policies are costing the rest of us £44 on every policy we take out. The most common omissions when taking out insurance relate to previous claims and convictions, our age or where our vehicle is kept over night. Men come off badly, being over three times as likely to conceal information that they believe will negatively affect their premiums than women; as do the young (18-34) who are ten times more likely to deceive than older generations (over 55s).

What impact does lying on your insurance application actually have?

Joining us to discuss this further is Professor of Psychology and author, Dr Glenn Wilson, and Insurance Expert, Matt Owen from Direct Line.

. Suggested Questions:

What does the research reveal about honesty in our area?

Why do you think people are lying about their ages, previous convictions and claims when taking out a new policy?

Why do people feel more comfortable lying on paper than they would in person?

How can this behaviour actually affect the rest of us?

What risks do those lying on their insurance applications face if they need to subsequently claim on their policy?

Where can we find out more information?