New research findings recently revealed that motor car insurance fraud levels increase in December of each year due to those looking to put one over on car insurance companies in order to gain some extra cash for their festive spending plans.
Cheap car insurance provider AXA has found that in the run up to the festive season, insurance claims spike by as much as 40 per cent every year. A large percentage of the incidents reported to insurers involve vehicle theft and fire, AXA also reported.
AXA’s counter fraud head, Steve Gaywood, remarked that he understood that the Christmas season can be an expensive one. However, he was saddened to see so many people go to such desperate measures in order to finance their Christmas spending, commenting that committing fraud is undoubtedly one of the worst ways to get the extra cash.
The company’s research findings also indicated that 44 per cent of survey respondents believing that they will end up starting the New Year with massive debt due to Christmas spending. Three out of every five of these respondents feel that it could take several months to get themselves clear of this debt, the insurer also found.
The worst part, experts say, is that even if someone successfully defrauds their insurer without being caught, the long-term results are negative as well. The Fraud Advisory Panel published figures indicating that the insurance industry incurs £2 billion in costs every year due to fraud, resulting in the average driver seeing as much as £44 in additional charges on an annual basis when it comes to their insurance premiums.