A West Yorkshire town was the recent site of the arrest of over 30 people on suspicions of involvement in a massive motor car insurance fraud ring, industry insiders recently reported.
Police officials apprehended the suspects in Huddersfield on accusations that they have been fabricating car accidents and raking in thousands of pounds from unsuspecting car insurance companies. Industry experts say that car insurance rates for honest motorists are £50 higher on average in order to pay for the effects of insurance fraud.
Nearby Sheffield and Leeds are also among the top spots for criminals to defraud providers, says the Insurance Fraud Bureau. The worst area in the country was found to be Birmingham, added the IFB.
The recent arrests were yet another victory in the war against fraudsters, said Bradford East Liberal Democrat MP, David Ward. Mr Ward has been campaigning tirelessly for discount car insurance, recently welcoming an announcement that insurance costs will be investigated officially by the Office of Fair Trading in the wake of its discovery that premium prices increased by nearly ten per cent from January to September of this year, while the previous year saw increases of 12 per cent.
Mr Ward had set up a survey online earlier in 2011 in light of the increases, revealing that the insurance premium prices of the respondents, 1,000 members of his constituency, had increased by 63 per cent on average from 2009 figures. Many drivers are thought to have been priced completely off the road by increasing premiums.
The Bradford East MP was delighted by the news of the arrests, as fraudsters are making a bad situation that much worse in regards of the nation’s insurance prices.