Stating that the the protection of the interests of honest UK motorists is of the utmost importance, the AA has recently welcomed the news of the City of London Police’s announcement of its formation of a dedicated motor car insurance fraud team.
Car insurance companies and the Insurance Fraud Bureau alike will work side-by-side with the new 35-person fraud investigation squad in order to rein in fraudsters in the City. The AA, whose insurance arm provides discount car insurance to its customers, expressed the hopes that the group will be able to change attitudes held towards defrauding insurers.
While the new fraud taskforce will initially concentrate on taking on major fraud instances, the AA was hopeful that it would eventually lead to lower car insurance rates for everyone through a reduction in the number of fraud cases that occurred. The AA’s motor insurance head, Mr Simon Douglas, remarked that insurance fraud is by no means a ‘victimless’ crime.
Defrauding car insurance companies affects more than just the industry itself, added Mr Douglas. Consumers feel the burn as well, as the costs incurred in paying out on fraudulent claims are passed along to honest motorists in the form of premium increases.
Fraud costs the car insurance sector somewhere in the vicinity of £16 million on a weekly basis. In fact recent research indicates that for every £1 insurers take in through premium payments, £1.24 goes out to pay for costs associated with accident claims – fraudulent and valid alike.
In related news, the AA has also seen fit to begin campaigning with an eye towards reminding UK motorists of the dangerous nature of drink driving over the summer months.