False Fraud Claims Force Prices UpMon, 12/10/2009
A surprising 30% of UK drivers give false information to car insurance companies.
Depending on the severity of the bogus information that is given, the applicant could end up blacklisted by all car insurance companies, leaving it virtually impossible for them to be able to drive legally again.
As many as 1 in 10 drivers in the UK admit to lying to their motor insurer in a bid to save costs of a possible rise on their premium.
A small minority of motorists also fail to declare any speeding penalties or bans for drink driving, when renewing a policy or applying for a new one.
Industry experts have estimated that from 25% to 33% of all car insurance claims have elements of fraud to them.
The credit crunch has increased the amount of false claims made on car insurance policies, many of them car related. Industry insiders estimate that the total amount of bogus claims totals £1.6 billion a year which goes on to directly affect honest policy holders.
False car crash claims have soared over the past year, estimating the total cost to above board motorists at £60 extra for their premiums.
Whilst more people are being caught submitting fraudulent claims, the estimated cost of undetected fraud claims has also risen by 24% to £1.9 billion.
Insurance companies are now investing in technology in a bid to prevent fraudulent claims, which will benefit the honest customers, and help to reduce their premium prices.