2,500 fraudulent motor car insurance claims are discovered weekly, according to the Association of British Insurers.
Car insurance companies are working harder than ever to safeguard their honest policyholders against insurance fraud, says director of general insurance and health for the ABI, Nick Starling. Honest customers end up having to pay higher car insurance rates due to the number of fraudulent claims, so weeding out fraudsters is a high priority for insurers, Mr Starling added.
However, insurance fraud is quite the serious problem in the UK, despite how many cheaters are brought out into the light every week. Fraud costs the discount car insurance industry £2 billion every year, which raises UK policyholder insurance bills by an additional £44, said the ABI.
Industry experts say that insurers can be extremely strict with fraud interpretations. While faking or exaggerating a claim is clearly something that will get a motorist in serious trouble, cutting corners in order to reduce the costs of keeping a car is just as frowned upon by the authorities.
It can be all too tempting to play fast and loose with the truth when reporting personal details to insurers in an attempt to reduce insurance costs. Doing so can come back to haunt you in the event of an accident, however, as failing to disclose important facts or giving false information to an insurer is not only a good way to risk invalidation of your insurance policy but also to be accused of driving illegally.
Industry experts agree that, even though it may seem completely innocent to be a bit economical with the truth, employing these methods to save a few pounds is most certainly not the case.