The Association of British Insurers (ABI) has claimed that there is an increasingly large number of people who are lying in order to save themselves money on their car insurance policies.
Many people are now not informing their policy providers about previous convictions in the hope of getting cheaper coverage.
This can include cases of drink driving or speeding.
The organisation claims that one policy holder whose vehicle was stolen had a claim for £7,000 rejected because he had failed to report two previous convictions for driving without insurance.
Nick Starling, the ABI’s director of general insurance and health, said: "Being truthful and shopping around will mean that your insurance delivers when you need it and that you get the best possible deal."
Yesterday, the AA released a list of amusing insurance claims stories it had received, including one incident involving a Christmas tree.
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