Cheapest car insurance news
17/04/2009

Motor cover rates hit by recession fraud

Rates for cheap car insurance in the UK are under pressure as the recession is leading to a growing number of fraudulent insurance claims.

About 107,000 false claims were detected last year, according to the Association of British Insurers (ABI).

The cost of fraud motor cover claims has proven to be the highest value with the amount culprits tried to illegally obtain totalling around £360 million.

One car driver tried to claim his vehicle had been stolen from a car park, but he subsequently confessed to pushing his car over a cliff.

If his claim had been successful, he had planned to use the insurance for car money to pay off his debts.

ABI insurance director Nick Starling said, "Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats."

Vehicle owners hunting for cheap car insurance quotes and premiums end up footing the bill for fraudulent claims with the cost of dodgy claims adding about £40 to every policy sold.



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