Stating that your car is worth significantly less than its true value may seem like a clever way to get a lower insurance quote, but this can often backfire (if you’ll pardon the pun)!
Insurers take many factors into consideration when setting premiums for their customers, among these is ‘moral hazard’. Without going into too much detail here, if you say your car isn’t worth much, the insurer might take the view that you are less likely to care for it than a more expensive model.
This view could prompt the insurer to charge a higher premium because of the extra risk. Always state the true value of your car.
