Cheap car insurance news
22/05/2007

Online car insurance comparison site comments on fraud figures

An online car insurance comparison site has released a response to recent motor insurance fraud figures from the Association of British Insurers (ABI).

The ABI has revealed that general insurance fraud could be costing UK companies and consumers as much as £4m a day. Its research also found that 1 in 10 people admit to having lied when making a claim on their insurance.

The Head of Insurance for uSwitch.com commented: "Fraud is a huge issue within the car insurance industry and undoubtedly it does increase the cost of insurance premiums for honest individuals who have never made a fraudulent claim.

"The information released today by the ABI which revealed that 5 million adults have made a fraudulent claim at some point on a general insurance policy, which includes car insurance, is extremely alarming."

He went on to describe the two types of fraudsters: the 'well-planned' type, who intend to claim when taking out their policies, and the 'if I can get away with it' type who try to get a little more out a claim that occurs than they should do.

The spokesperson for the online car insurance comparison site warned: "If a consumer is convicted of fraud it will become very difficult to get car insurance in the future so making a fast buck could result in a lifetime of excessive insurance costs.

"Virtually all car insurance brokers and providers use two systems: Motor Insurance Anti Fraud and Theft Register (MIAFTR) and the Claims and Underwriting Exchange to share information making it very difficult to keep the conviction a secret."

 

 

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