July 4, 2008

£5 million insurance claim!

Through the past four years, deceptive motor insurance claims have increased by a massive 70%. It is true to say that the car insurance field is the highest targeted by fraudsters at present. The Association of British Insurers has recently announced that the British are submitting dishonest motor claims of up to £5 million a week!

Four years ago, insurance companies identified 14,000 people who had made false motor insurance claims. Last year the number stood at 24,000 and has further increased this year.

The motor insurance companies have concluded that because of the credit crunch, families in particular are forced to take desperate measures and this certain dishonesty is just one way they choose.

Motor insurance swindles add about £40 a year to the premiums of law-abiding drivers.

As for insurance fraud as a whole, which includes motor, household, travel and liability cover, insurance firms uncovered a total of 91,000 fraudulent claims last year, amounting to £557 million. Four years ago, the figure was £263 million.

Insurance should only be used when it is a genuine claim, so it helps with your insurance annual costs and overall will help you to be a more honest person, which is always highly regarded.

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