Don't Lie on Your Car Insurance Application Forms

There's a curious - some would say quaint - Latin phrase some insurance professionals use to describe the relationship between insurer and insured. That phrase is uberrimae fidei and it means "utmost good faith". In other words, it means that the relationship is based on both parties being totally honest with each other and not telling any untruths - by commission or omission. In short, it's the reason why you don't lie on your car insurance application forms.

Whether quaint or otherwise, this concept of utmost good faith is so central to the principles of the insurance business that it lies at the heart of every insurance contract. In the absence of such honesty, the contract itself can be null and void. What this means, of course, is that unless you tell the truth on your car insurance proposal forms, the insurance can be declared invalid. Even though you've been paying the premiums each month, if the insurer can show that you've acted in anything less than utmost good faith, when it comes to making a claim, the policy can be declared invalid and you find that you are uninsured.

This is something that could leave you not only seriously out of pocket, if you have to fund all repairs and damage yourself, but could also put you in serious breach of the law by driving while uninsured. Therefore, the message is pretty clear - don't lie on your car insurance application forms.

One of the areas in which people seem tempted to be less than truthful relates to previous motoring convictions. They quite rightly recognise that past infractions will be taken into account by the insurer when calculating the risks, potentially leading to an increased premium as a result. In attempt to avoid paying the higher premium, some people might be tempted simply to lie, or not to divulge the complete truth about their motoring convictions. In the event of an accident, especially one to which the police are called and one involving a subsequent summons to court, it's likely that the driver's record will come out. With this in mind, there's a risk of the insurance company then declaring that the insurance policy is in fact invalid.

Some applicants for car insurance cover are sometimes economic with the truth when assessing the state of their health and their fitness to drive. If the car insurance application form asks for any kind of medical declaration as to your fitness to drive, it would be extremely short sighted once again to lie about it. Still worse, of course, is to have told the same lies or to have exercised the same deceit with the Driver and Vehicle Licensing Authority (DVLA) in order to secure or keep your driving licence. This is a criminal offence, your driving licence would be invalid and, along with it, would be any insurance you had arranged.

When it come to car insurance applications it's best to be completely honest about modified vehicles. Modifications - especially those that alter the performance of the car - are key to the insurer's assessment of the risk of insuring the vehicle. If they feel they've been misled, or lied to, the chances are that they'll consider whether or not to honour the insurance contract in its entirety.

Jon McGovern is from Tescocompare.com, the insurance comparison site where you can compare car insurance policy features and prices.