Car Insurance Fraud Costs £800 Million a Year

One of the most popular car insurance companies did a study recently, and what they found was that fraud within the industry is now at £800 million a year.

As I’ve talked about before, it isn’t the insurance companies that pay for it though, no, they simply pass on the cost to you…the innocent driver who obeys the laws of the roads and does everything by the book.

The Customer Pays For It

It isn’t fair really is it? Why should these criminals get away with all this car insurance fraud and then you end up picking up the bill? Something needs to be done.

So what kind of fraud is regularly used to scam the industry out of millions? The study suggests that low speed crashes are the most popular right now, with around 40% of all claims relating to this kind of fraud.

Basically, what happens is that a car will drive really slow in front of an innocent motorist and then suddenly brake. They will then make up a list of imaginary expenses such as damage to the car and personal injury costs, all of which will be taken care of by the insurance company. Sometimes, they even make claims for non-existent passengers.

It’s easy for them to get away with it though, because car insurance companies are not that bothered really, and if they’re not bothered, then Police won’t be interested either.

Justice is Served…Sometimes

That isn’t to say that some criminal gangs have not been arrested and sentenced for car insurance fraud, it’s just that more needs to be done.

The study went on to find out that, on average, there are 70,000 cases of car insurance fraud every year…that’s 192 a day, which accounts for £800 million a year.

Not only that, but research has shown that an average payout for one incident is £11,428, so it’s easy to see why these criminal gangs are so organised, and often willing to prowl the roads up and down the UK in search of their next victim.

Car Insurance Fraud = £90 Out Of Your Pocket

Car insurance might be cheap where you live or it might be expensive, but it is estimated that fraud adds another £90 onto the average policy.

Doesn’t that make you angry? It should do, but there really isn’t anything you can do right now, because car insurance fraud is not going anywhere soon.

The one thing you can do though is make your policy cheaper, and it all starts with a comparison website.

Compare Quotes The Easy Way

No matter if you are looking for a brand new policy or you want to renew your existing one, the best way to get cheap car insurance is by comparing quotes and then choosing the most suitable one for your needs.

It only take a few minutes of your time to complete the simple form right here on this website, and then when you’ve done that you instantly start getting quotes.

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