A growing number of car insurance claims are being rejected by insurers because drivers are either withholding information or not telling the truth.

Reports suggest that the there has been a 30 per cent rise in the number of claims being turned down in the last six months.

According to statistics from AA Insurance, drivers are increasingly giving false addresses and fail to reveal convictions. Additionally, motorists are omitting any mention of previous claims and they also do not inform their insurance companies of any modifications made to their cars.

The insurer says that a majority of the claims were rejected because of ‘fronting’, which means people tried to reduce premiums by lying to their car insurance provider about who the main driver of the insured vehicle is.

The company adds that this is a regular occurrence in cases where a young or inexperienced person is the true principal driver. AA Insurance also says that car insurance fraud now adds nearly £30 to every private car insurance policy in the UK and honest policyholders end up paying more to subsidise fraudsters.

The insurance provider warned that motorists who are not telling the truth might find it difficult to get cover in the future. Industry experts including insurers believe that the credit crunch and the high cost of premiums are behind the increase in dishonesty.