CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 18 JUNE 2014:
It’s been one awful week for car insurance companies – not only are new reforms may be on the horizon, but instances of motor car insurance fraud are higher.
Insurers are being investigated by the Competition and Markets Authority at the moment in order to prevent these companies from possibly bilking consumers out of millions of pounds a year. The results could be new reforms such as instituting a cap on how much an insurer can be charged for replacement and repairs. The whole reason behind this is because at-fault insurers have been encountering incredibly high charges over the past few years or so, and regulators have apparently looked into the issue and found more than a grain of truth in the accusation.
By ‘more than a grain of truth’ I’m assuming that this means that ‘insurers are too busy rodgering each other to offer consumers good deals.’ Then again there are most likely just a many consumers trying to have a go at car insurance companies as well, especially since new research has found that car insurance scams involving ‘cash for crash’ fraud has doubled over the last year.
According to major insurer Aviva – which provides some 10 per cent of the nation’s car insurance policies – there were more than 820 faked accidents last year. These accidents resulted in more than 2,000 false claims designed to bilk the insurer out of as much cash as they can. Aviva is currently campaigning for fraudsters caught in the act to be punished much more severely to act as a deterrent. However, I really don’t see how that’s going to be very effective, at least if the punishments remain in the realm of fixed penalties or fines.
What’s the worst that Aviva will do to you? Deny you insurance cover? That certainly won’t deter anyone who is depraved enough to try to defraud the insurance industry, as these bastards will simply motor around without valid cover and simply take their chances with the police. Unless you start handing out jail time for offences like cash for crash schemes and driving without proper cover – and hefty jail sentences at that – fraudsters, scammers and criminals simply won’t give a whit.