This is why we can’t have nice things – or cheap insurance


If you’ve ever wondered why we as consumers can’t catch a break when it comes to cheap car insurance, allow me to educate you through the following examples!

Everyone who’s had the distinct displeasure of shopping around for motor car insurance can attest to how high rates are right now. Well, there’s a reason for our sky-high premiums: rampant insurance fraud.

In fact, it was just made public how one couple were caught red-handed after running a massive insurance fraud scheme that cost honest drivers some £900,000. The two foreign nationals, Gagik Manucharayan from Cyprus and Elina Jaksone from Latvia, had set up a car insurance brokerage firm that purportedly offered cheap cover to Brits, netting commissions of £100 for each client, even though the two fraudsters would lie to insurance underwriters, posing as their clients and supplying falsified driving records and  personal details in order to scam cheap insurance cover from these underwriters.

The scheme, which ran for seven long years, ran the risk of leaving many of their clients driving about with invalid cover. Of course, as these criminals jeopardised their innocent clients’ motoring records and safety, the pair lived it up by taking long, luxurious holidays abroad and sending one of their children to one of the most expensive and prestigious public school’s in Britain.


Luckily these two were caught, but the damage has already been done – fraud like this drives car insurance rates through the roof, especially when it turns out such a huge number of motorists have been driving without valid insurance. Still, at least these drivers had no idea what they were doing – unlike the motorist who was caught recently driving without insurance at a routine traffic stop because police suspected her vehicle had been fitted with illegal lights.

The woman in question, Kristina Margaret Hughes, admitted the offence at an appearance at Fermanagh Court, which resulted in her being given six penalty points and fined £250. Now it turns out that she has since secured proper insurance cover for herself, but her rates are almost certainly to be incredibly high considering she’s already demonstrated terrible presence of mind by getting behind the wheel without proper cover in the first place.

It’s just a good thing that she didn’t end up getting into a road traffic accident, as the costs incurred by accidents caused by uninsured motorists are absorbed by the insurance industry as a whole, and we all know where the funds come from for that: our premiums. Enough uninsured motorists get into serious prangs and the rates for everyone go up!

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