Fraudulent car insurance claims continue to rise

The Association of British Insurers (ABI) has reported a 30% increase in fraudulent insurance claims detected and prevented since 2007.

Whilst more people are being caught submitting fraudulent claims, the estimated cost of undetected fraud claims has also risen by 24% to £1.9 billion. This now means an average increase of £44 in every household's general insurance premiums.

Just some of the dodgy car insurance claims detected include not declaring motoring convictions, submitting an incorrect address and naming a parent as the main driver of a vehicle when it is mostly driven by a high risk motorist.

The ABI’s Director of General Insurance and Health, Nick Starling commented:  

"There is no hiding place for insurance cheats. Honest customers should not have to pay for the fraudsters. The tough approach taken by insurers to protect honest customers means that they are detecting more of the fraud committed. Closer scrutiny of proposal forms and claims, as well the exchange of information through industry-wide databases, is tightening the net on the cheats. Getting a criminal record, as well as difficulty in obtaining and more expensive insurance and credit problem await anyone who sees insurance as a soft

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