According to new information recently released by the National Fraud Authority, dishonest motor car insurance claim costs run into the £2 billion range every year.
The NFA report, released by financial comparison site confused.com, examines the sources of all the recent increases to car insurance rates the country has been experiencing.
The report delineates how, on average, a comprehensive car insurance quote has risen by £177 over the past 12 months, but some classes of motorists have been hit much harder by the rate hikes. In the case of discount car insurance for young drivers, the possibility has eroded quite seriously, especially for males; young male drivers between 17 and 20 years of age have seen an average increase of £616 to their policies.
The study then turns its gaze to the future, proclaiming that the light at the end of the tunnel is in fact not an oncoming train; price increases, according to the data, have begun slowing down and are predicted to continue to do so in the future.
Darren Black, Confused.com’s head of motor insurance, stated that fraud impacts the cost of car insurance quite significantly. Mr Black stated that fraud, whether it be a simple embellishment of personal injuries, or organised operations on a larger scale to unlawfully gain compensation from car insurance companies, the results are the same: honest, responsible motor vehicle operators end up bearing the burden.
Mr Black also stated that the National Fraud Authority suggested that dishonest and fraudulent insurance claims cost the industry an approximate £2 billion every year. The most notorious areas of the UK for organised fraud, most through so-called “cash for crash” scams, have been identified as Liverpool, Birmingham, Leeds, Manchester, and Blackburn.
Industry experts agree that while dishonest car insurance claims will continue to be a problem in the future, more rigorous law enforcement may curb the growing trend.