The AA is warning motorists to be honest and truthful when taking out a motor insurance policy. Insurance companies have become very vigilant when settling claims and have the right to part or in-full refuse a claim if it is discovered that false information was given on the insurance policy proposal form. The failure to disclose driver and claims history can also lead to problems when a claim arises.
"It is absolutely essential that you are fully honest and truthful when you are taking out car insurance. If you are not then you risk losing all or part of your cover in the event that you do have to make a claim." says Director of Policy at AA Ireland, Conor Faughnan.
Motorists may seek a reduced premium by withholding information from their insurance company, and may be successful, but this is very much a false economy.
Faughnan continued: "An insurance company is within its rights to deny part or your entire claim if you have been less than completely truthful." Irish insurance companies maintain a shared database, called "Insurance Link", on which the details of all claims and claimants are maintained.
The AA is advising motorists to be open with their insurance company and ask them if in any doubt. The cost of an insurance premium can be reduced legitimately by reducing the insured value of your car as prices for cars have fallen in 2010, and your current valuation may be unrealistically high. Restricting the number of drivers on your policy may also attract an additional discount.