Insurance premium rise is down to fraudulent accidents and bogus claims
July 29th, 2010in Insurance (submitted 2010-07-25)
Insurance experts have claimed that hidden fraud and cons known as ‘crash for cash’ incidents have been the major factor behind a record rise in UK premiums for law-abiding motorists. This has been coupled with an increase in costs from personal injury claims, many of which are embellished or bogus.
The Association of British Insurers (ABI) reported that the estimated cost of fraud in home and motor insurance increased by 1.9 billion a year, costing the average household 44 more in premiums annually.
Official government figures revealed that there had been a dramatic drop in the number of road accidents and vehicle crime from 2009 to 2010. Vehicle crime fell by 16 per cent in England Wales during this time, with insurance experts warning the statistics were not showing an unseen rise in fraudulent claims or accidents
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