Premiums news
18/03/2011
Fake claims could bring an end to cheap car insurance
There are many reasons why it is becoming more difficult for motorists to find a cheap car insurance deal, but one reason is due to faked injury claims.
The Commons Transport Committee has stated that the privilege of being able to receive compensation should not be abused and that some individuals seem to feel they "have a licence" to make a false injury claim.
Some MP's are demanding a concentrated effort to be made in a bid to put an end to the rising cost of car cover as a result of fraudulent claims.
The committee chairman spoke up saying, "Wider access to justice is to be welcomed, but it has come at a significant cost, with far more personal injury claims being made than in the past."
Police have shown evidence to the committee which shows that some individuals are staging accidents in order to make a claim and collect money. The committee made it clear that this problem will soon get out of hand if insurance companies do not help UK law enforcement groups put an end to these fraudulent activities.
At the moment it seems as if cheap car insurance for all motorists is far from becoming widely available, with the AA presenting evidence saying that average premiums have risen by a third last year, which is the steepest rise in 16 years.