Car insurance quote news
25/02/2009
Recession fuelling fraudulent car policy claims
Car insurance fraud is forecast to grow as the recession starts to bite deeper into people's pockets and many turn to crime to try to make ends meet.
The alarming finding is being highlighted by a fraud group that has seen insurance scams increase to almost one in five of all policy claims made last year.
Crash for cash scams and vehicle arsons are rising as well as the more common types of fraud such as misrepresentation - when false information is supplied to secure a cheaper quote.
A minority of motorists facing financial difficulties see cars as a way to raise easy money. Making false personal injury claims such as for whiplash or destroying vehicles by fire can lead to substantial cash sums being paid out by insurers.
In an investigation carried out by Sky News, one criminal revealed a growing number of owners are paying him to set alight vehicles.
The Association of British Insurers (ABI) confirmed that fraud increases during economic downturns as people try to lay their hands on extra money.
Law-abiding customers end up footing the annual £1.6 billion bill for car insurance fraud in the UK with their quotes and premiums rising an additional five per cent to cover scams and other illegal activities.
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