Concern Over Amount Of Car Insurance Fraud

We recently commented on the amount of car insurance fraud experienced by Aviva, Britain’s biggest insurer. Well, now the Association of British Insurers (ABI) has issued some statistics that are most concerning.

37 Concern Over Amount Of Car Insurance Fraud

The number of fraudulent car insurance claims continues to give cause for concern

In 2013, fraudulent insurance claims increased by 18% when compared to 2012 to a staggering £1.3 billion. The biggest insurance sector for fraudulent insurance claims was in respect of motor insurance that came to a huge £811 million. This was an increase of almost a third at 32% on the previous year. There were 59,900 dishonest claims that was an increase of over a third at 34% on the figures for 2012.

Apparently, the Insurance Fraud Bureau (IFB) is helping insurance companies and the police look into 110 cases of what is commonly called “crash for cash” crimes with a monetary value of £120 million. These crimes include cars going into the back of other cars at the likes of traffic lights and junctions on purpose.

These figures are most disturbing with one reason being that they have the effect of increasing the car insurance premiums that we all pay. This is unfair for the honest motorist and we should be doing everything that we can to support the relevant authorities to try to stamp out such practices.

It is stressful enough to be involved in a car accident at any time with the possibility of injury and/or death to contend with never mind the inconvenience of having to go through the claims process and all that entails.

Yes, we have seen average car insurance premiums fall in the last few months but it would be lovely to see them come down even further. Let us hope that suitable measures can be brought in by the likes of the Government to act as a deterrent to those people involved in such fraudulent activities.

As always, your views are appreciated so feel free to leave your comments.