Wales has been gripped by levels of motor car insurance fraud that have reached epidemic proportions say expert investigators.
One law firm which specialises in the investigation of suspicious claims for car insurance companies recently stated that the UK has seen substantial fraudulent claim growth over the last two years. Law firm Keoghs stated the blame can like with the current economic climate for attracting more people to perpetrate insurance fraud.
Two years ago the only area in Wales that was classed as anything besides low-risk was the Cardiff postcode areas according to several providers of discount car insurance. However in 2011 both Llandudno and Cardiff were classified as high-risk while Newport and Swansea are now considered to be moderate-risk areas as well.
The new report by the law firm states that Cardiff is one Welsh city that should be subjected to greater levels of scrutiny due to the rapidly growing problem. Cardiff is now ranked as 26th worst place in the UK for car insurance fraud and accounting for 1.27 per cent of all suspect claims. This represents a large move from its 2009 position as only 47th worst.
Llandudno jumped up the list even farther. Whilst it formerly occupied the 77th worst it has since landed 36th, which accounts for o.96 per cent of suspicious claim activity.
Ian Crowder, a spokesman for the AA, stated that there is a tendency for unemployment, uninsured drivers, and insurance fraud to be linked together. He added that a higher number of false claims tend to be from urban areas a opposed to rural ones.
It doesn’t take much to lead to increased costs in claims when it comes to car insurance fraud, Mr Crowder added. The spokesman said that it only takes a few people in a given area to commit fraud to run costs up significantly.