Car Insurance Fraud

It is estimated that insurers uncover £5 million worth of fraudulent insurance claims a report published by an industry body claims. The Association of British Insurers (ABI) found that 24,000 claims last year were found to be dishonest, amounting to an estimated £260 million. Due to these fraudulent claims it is estimated that customers have to pay on average £40 a year more on their premiums.Highway robberyDick Turpin used to wear a mask, but today’s ‘highway robber’ prefers to separate us from our hard-earned cash by driving up our premiums through fraudulent insurance claims, some often bordering on ludicrous! Many people who process fraudulent claims may see it as a victimless crime, only stealing from the big bad insurance company in a Robin Hood fashion. However, the reality is much different as premiums are constantly on the rise due to outlandish claims like this one:One example given by the ABI was the claim made by the owner of a Rolls Royce who claimed he had his hubcaps, front bumper, seats and steering wheel stolen. However the cunning crime was foiled once all the aforementioned items were retrieved from his own house!Due to the spiralling nature of what seems to be an ever occurring problem, the ABI have set up a special Insurance Fraud Bureau. This was set up in 2006 to help tackle the ‘cash for crash’ phenomenon in which people were deliberately staging crashes in order to claim against them. Often in these cases drivers are braking sharply and making contact with innocent drivers in order to claim. Many new drivers, young and old alike are being put off from buying a car, as they feel that these increasing insurance costs are making owning a car and having it on the road unaffordable. Some are even choosing to run the risk of having no insurance at all which again is part of the problem. As the cost of uninsured drivers is also pushing up the cost of insurance premiums.If you looking to change your Car Insurance there are plenty of sites available in which will give you Insurance quotes. If you are a new driver or looking for young driver insurance there are insurance companies out there who will cater for your exact needs.