The Insurance Times reports that two insurers, Allianz Cornhill and Admiral, have been piloting a scheme that withholds cover on new policy applications pending inspection of their cars.

The scheme is intended to prevent consumers fraudulently misrepresenting the condition of their cars when they have been damaged before the inception of new policies, and is being operated in conjunction with security device manufacturer Toad, which has worked on a similar scheme with Royal & SunAlliance.

The scheme has reportedly uncovered some 20% of prospective insurance customers withdrawing applications on finding that their cars will be inspected. Sources familiar with the scheme say up to 20% of customers withdraw requests for cover upon learning that their vehicle will be inspected.