Royal & Sun Alliance (R&SA) says 10%-15% of customers cancel their motor policies when they are told their vehicle will be inspected by engineers.
Earlier this year, R&SA began running a vehicle inspection pilot on its motor lines in conjunction with vehicle security specialists Toad.
Under the scheme, which was launched in May, R&SA customers have their vehicles placed on cover subject to an inspection carried out by a Toad engineer. The idea behind the inspections is to eliminate instances where customers falsely represent the condition of their vehicle when requesting cover.
A R&SA spokesman said this week the pilot was still ongoing, with around 10% -15% of customers cancelling policies when they discovered they would be visited by a Toad engineer.
Under the terms of the pilot, a Toad engineer visits the customer to inspect his vehicle, and then completes a vehicle evaluation form detailing the vehicle's condition.