When you’re insuring your car, you’re looking for the best deal and that usually means the cheapest deal. In that environment, it is easy to think that a little 'white lie' about your vehicle or your circumstances will not hurt you if it saves you a few pounds. That is a risky and inadvisable approach, as a recent decision from Greenock Sheriff Court illustrates. The claimant in that case had insured his Audi with Zenith Insurance. When the vehicle was stolen, he claimed on his car insurance for the value of the vehicle. The claim was refused. Zenith said they were treating his policy as void. They refunded the premiums he had paid (amounting to about £1,440) but refused to pay him the value of his car (about £20,000). He sued Zenith for payment of the value of the car. He lost. Insurance contracts are contracts of the utmost good faith Basically, this means that you, as the insured, have a duty to disclose all material or “important” facts that might have Continue Reading