Rise in car insurance fraud

Thu, 18 Dec 2008

Car insurance fraud is on the rise as a result of the credit crunch, according to a recent study from Norwich Union .

In order to try and save money on their car insurance premiums, many drivers have been giving false information to insurers . Norwich Union have stated that any insurance granted on false premises is invalid and also that the cost of fraudulent underwriting, around £1.6 billion per year, is passed on by insurers to honest motorists .

Simon Warsop, director of motor pricing at Norwich Union, said: "As the nation feels the pinch from the credit crunch, more and more people think that they can get away with dishonesty for what is seen as a victimless crime ." He added "insurance fraud is certainly not a victimless crime" and explained that honest motorists can pay between £50 and £60 more for their policies because of underwriting fraud.

Recent research by Abbey suggests that domestic crime could also become more prevalent as the recession worsens.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.

UK Home Insurance QuotesHome Insurance

Get the best home insurance deal and learn how to minimise the risk of household burglary.

Car Insurance - Compare Quotes from top UK CompaniesCar Insurances

Find the cheapest Car Insurance quote in the UK and get tips to help reduce your premiums.