A leading British Insurance company has revealed that the cases of fraud have resulted in the rise of auto insurance premiums at a rate fastest ever. By the last quarter on as on June 30, the premiums had risen by more than 11 per cent.
The more than 11 per cent increase of the car insurance premiums for the comprehensive car insurance policy is followed by the second largest premium increase, which was just half a year ago.
The premiums sold by car insurance comparison sites were even higher reaching up to 12.7 per cent. The shoparound premiums increased for third party, fire and theft cover policy by 15.9 per cent to 17.1 per cent.
The President of the leading insurance company site has said that though the crimes rates have gone down as per the last British Crime Survey but the fraud cases in the car insurance industry, including false information, crash for cash claims and claims for void injuries have been giving rise to the car insurance premiums. He said that it is easier for people to manipulate their information on car insurance comparison sites in order to get a low premium.
The insurance companies, on the other hand, charge higher premiums from the people in order to compensate the risk in the fraud. The premiums for motor insurance have risen by £193 in the last nine months. Motorists who enjoy the cheapest of car insurance premiums have seen an increase by £98.
In the year 2009, the compensation cost suffered by the car insurance companies had exceeded the income from premiums by 22 per cent. Some people see the current rise in car insurance premiums as a way filling the huge gap created in the car insurance industry last year.
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