SCAMARAMA: Car insurance fraud at an all time high

30 May 2014

CarCrash We’ve already heard about the money-spinning scams used by unscrupulous drivers to make fraudulent insurance claims.

From taking bulbs out of tail lights so that people crash into you, to simply railroading pregnant women in cars on purpose: there’s a myriad of choices for the petty criminal about town.

And now the Association of British Insurers (ABI) is saying that detected insurance fraud reached record heights in 2013 an 18% increase on the previous year. £1.3bn was paid out in dodgy claims involving fake car crashes and car insurance scams last year.

Crash for cash scams are rife all around the country, and that causes everyone’s wallets to suffer from whiplash, too. It’s been estimated that fraudsters are costing households £50 extra a year on their insurance premiums.

As well as professional crash for cash scammers, fake car insurance claims rose by 34%, with people claiming they had injuries and later being filmed playing golf and dancing the pasa doble.

But although attempted fraud has gone up, the ABI added that overall the number of successful fraudulent cases has gone down, thanks to better reporting and investigation.

Malcolm Tarling of the ABI said: ‘The number of detected frauds is rising; that's because we are getting better at detecting staged accidents. We are going to continue to tackle fraud - that's what our honest customers expect us to do.’

Hmmm. So if actual fraudulent claims are down, why are our premiums still up?

TOPICS:   Consumer Advice   Scams   Insurance   Motoring   Banking   How To Guides

3 comments

  • jokester4
    "So if actual fraudulent claims are down, why are our premiums still up?" Maybe because most car insurance companies are liars, thieves and cheats who constantly break the law and their own T&Cs ???
  • Some Y.
    [...] of people visit our website hold the false belief that insurance rates magically drop at 25. Actually, a drivers insurance [...]
  • Scamarama: B.
    [...] 1.3bn was paid out in dodgy claims involving fake car crashes and car insurance scams last year. Crash for cash scams are rife all around the country, and that causes everyones wallets to suffer from whiplash, too. Its been estimated that fraudsters are costing households 50 extra a year on their insurance premiums. As well as professional crash for cash scammers, fake car insurance claims rose by 34%, with people claiming they had injuries and later being filmed playing golf and dancing the pasa doble. But although attempted fraud has gone up, the ABI added that overall the number of successful fraudulent cases has gone down, thanks to better reporting and investigation. Malcolm Tarling of the ABI said: The number of detected frauds is rising; thats because we are getting better at detecting staged accidents. For the original version including any supplementary images or video, visit http://www.bitterwallet.com/scamarama-car-insurance-fraud-at-an-all-time-high/75600 [...]

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