Recent research conducted by an independent company in US uncovered a number of sports car owners who had claimed their flashy cars were for farm use in order to save money on their annual motor insurance.
The investigation found that owners of state of the art sports cars such as Porsche, Audi and Ferrari models were registered for farm use so as to benefit from a discount of up to 20% on their motor insurance policies.
However it’s believed this practice is costing the insurance industry in America $150 million a year and so the insurance providers have decided enough is enough and have called in outside companies to start verifying the data of their policy holders.
Vehicles which are registered for use as farm vehicles qualify for a discount on their annual insurance premium as they are deemed less of a risk as they are statistically less likely to be stolen or involved in a road traffic accident compared to cars kept and used predominantly in urban areas.
The investigation carried out by an independent San Francisco based firm uncovered a number of potential fraudsters who’d falsely claimed their sports cars were farm vehicles. One policyholder highlighted in the report had told his insurance provider that his Audi A4 car was used for farm work, however the vehicle was registered to an address in the built up city area of Brooklyn in New York where less than 1% of the population is engaged in agriculture.