Stamp out fraud to reduce car insurance rates, say insurers

Several car insurance companies have recently stated that if the runaway rise in insurance premiums is to be stopped, motor car insurance fraud must be stamped out.

Over the last 12 months, the average cost of comprehensive insurance cover for a motor vehicle has risen by 40 per cent.  If this trend were to continue, a large proportion of motorists may end up taking their car off the road permanently due to being priced out of the market.  The severity of the car insurance rate hikes are even more of a problem for younger drivers, as the 17 to 25 age group’s average rise in the costs of their comprehensive policies was 51 per cent.

The high incidence of insurance fraud is the main reason insurers cite whenever questioned about rising insurance costs.  Honest drivers bear the brunt of the costs for so-called “cash for crash” scams, in addition to the explosion of personal injury claim cases.

Even the most discount car insurance for young drivers stands somewhere between £2,000 and £3,000.  However since the maximum fine for driving without a licence is no more than £1,000, many younger drivers are willing to take the risk in order to save money. As a result insurers have lobbied hard for authorities to enact stronger legislation leading to more punitive measures to be taken in the event that an uninsured driver is caught, hoping that stiffer fees may be suitable deterrence.

Motorists can aid in the fight against fraud, says the car insurance industry.  If involved in any sort of traffic collision, drivers should be encouraged to take down as many details regarding the incident as they can.  Additionally, if it is possible, pictures should be taken, and an accurate count of the number of passengers in the other vehicle or vehicles involved can benefit in preventing any fraudulent claims that may be submitted by the other party.

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