Automobile insurance coverage fraud is on the rise within the UK
Automobile insurance coverage fraud is a rising downside within the UK which prices an estimated £780million a yr.
Knowledge obtained by way of a Freedom of Data request by MoneySuperMarket has, nevertheless, revealed small variety of fraud instances are literally reported to the police.
The comparability web site requested all 43 territorial UK police forces what number of instances of motor insurance coverage fraud had been recorded over the previous ten years, breaking down the outcomes by the kind of offence.
This contains crash-for-cash incidents, phantom passenger scams, fabricated or exaggerated claims, fronting, ghost broking and acquiring insurance coverage utilizing false info.
Of the 43 forces contacted, 13 returned with knowledge units, all with surprisingly low numbers of reported instances.
In whole there have been only one,087 instances of motor insurance coverage fraud reported to forces over the previous decade, whereas The Affiliation of British Insurers recorded 68,000 instances of motor insurance coverage fraud in 2016 alone.
The police drive that recorded the very best variety of instances of fraud was Metropolis of London Police with 746 instances, adopted by West Yorkshire Police (10) and Derbyshire Police (53).
The info additionally exhibits that the overwhelming majority of motor insurance coverage fraud within the UK pertains to acquiring insurance coverage utilizing false info (54.eight per cent).
Drivers that intentionally present incorrect particulars to an insurer about any side of their utility, together with your title, age orb title, is illegitimate.
Along with this withholding info corresponding to the kind of automobile you drive, your earlier driving historical past, the place you reside and who the principle driver is, can be towards the regulation.
Crash-for-cash scams are the following most certainly kind of motor insurance coverage fraud, accounting for over a warted of all fraudulent claims (25.5 per cent).
These scams have gotten more and more extra widespread within the UK and are conditions during which a crash is engineered so the fraudsters can declare on the sufferer’s insurance coverage.
Kevin Pratt, shopper affairs professional at MoneySuperMarket, commented: “Motor insurance coverage fraud stays an enormous downside for drivers within the UK.
“Though we frequently hear from insurers in regards to the influence that felony exercise has on automobile insurance coverage costs, with £50 per coverage being talked about, these figures present surprisingly low quantity of incidents are being reported to police forces.
“This can be as a result of, traditionally, so-called ‘white collar’ crime has been much less of a precedence for the police.
“And in society normally, insurance coverage firms are sometimes seen as ‘honest sport’, creating an impression that insurance coverage fraud is a victimless crime. Regardless of the purpose, what police forces see is clearly the tip of the iceberg.
“Finally, it’s sincere motorists who foot the invoice for fraudulent exercise as a result of false claims push up the worth of annual premiums by round £50 per motorist.
“With the typical price of a completely complete coverage presently sitting at £508 a yr, now’s time to buy round and see in the event you may very well be getting a greater deal.
“In case you haven’t switched for a when you may very well be in line for a considerable saving in your premium, probably within the area of £280, so it’s definitely worth the minor effort.”
Listed below are MoneySuperMarket’s high suggestions designed to guard motorists from being a sufferer of insurance coverage fraud:
1. All the time be alert to the opportunity of a staged accident – keep away from driving near the car in entrance in case it brakes immediately to engineer a collision
2. In case you are concerned in an accident, name the police instantly and speak to your insurance coverage firm as quickly as attainable
three. By no means admit legal responsibility, even verbally, and by no means accept money
four. A splash cam can present plain proof of what occurred in a motor incident and make sure that any false declare shall be immediately rejected.
5. Taking photographs on the scene of an incident, particularly specializing in what number of passengers have been within the different car and the make of car concerned, may also help battle phantom passenger scams.