Motor insurance fraud age gap
New research by Liberty Insurance suggests a serious discrepancy in what constitutes insurance fraud between 17- to 29-year-old drivers and their older peers.
Conducted by Red C Research among 750 drivers, the survey found that 31 per cent of young drivers consider being untruthful about the primary driver of their car to be ‘mild’ insurance fraud or not fraud at all; this compares to 19 per cent of all adult drivers.
Additionally, 56 per cent of young drivers consider being untruthful about your profession to be mild insurance fraud or not fraud at all, and 58 per cent say the same about providing a false estimate of the number of kilometres driven per year.
Despite these discrepancies, almost half, 46 per cent, of all respondents said that being untruthful with your insurer about the number of penalty points on your license constitutes ‘extreme fraud’. 43 per cent say providing your insurer with false information about your driving experience is also extreme fraud.
In such cases, being untruthful about the primary driver, your profession, annual mileage or penalty points when applying for insurance constitutes fraud. If detected it may prevent an individual from securing insurance cover in the future or invalidate a claim.
82 per cent of Irish drivers believe a ‘claims culture’ is more prevalent in Ireland today versus ten years ago, while 88 per cent think those who submit fraudulent claims should face harsher penalties.
Despite this, few are willing to blow the whistle on insurance fraud.
44 per cent would not out of fear of being found out, increasing to 51 per cent among those aged 25-34.
Commenting on the research, Liberty Insurance CEO, Sharon O’Brien, said: ‘Our research reveals a number of interesting findings on the opinions of Irish people on what does and doesn’t constitute insurance fraud, particularly among young drivers.
Ultimately, intentionally misleading your insurer about your driving
record, your vehicle and other details on a policy application is a form of fraud. Fraud is a very serious problem for our industry and impacts significantly on cost. It is not a victimless crime and effects the premiums that our customers pay.’
Ms O’Brien said most Irish people recognise this and want to see these people face harsher penalties.
‘ The rapid rise of premiums in Ireland is of course not sustainable.. we want to work with industry stakeholders and the Government to agree the best ways to combat fraud and make motor insurance in Ireland as fair and affordable as possible.
‘Additionally customers need to understand the importance of checking the details on their documents are correct and that their circumstances have not changed so that they are not unintentionally misleading their insurer.’