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Posted July 10th 2008

Car Insurance Fraud Uncovered!

Recent statistics released by the Association of British Insurers reveal high detection rates of those committing fraudulent car insurance claims.

According to the Insurers trade association which covers most major insurance companies in the United Kingdom, approximately 24,000 claims totalling £260 million submitted were found to be fraudulent following further investigation. It’s no secret that in the last 10 years serious efforts have been made by Insurance Companies to share data and identify fraud through sophisticated investigation techniques.

It is estimated that in the UK car insurance claim fraud costs each law abiding motorist an average of £40 extra on their car insurance premiums each year. The findings by the ABI serve as a warning of those thinking of committing claim fraud never mind the risk of a criminal record and future difficulties in obtaining insurance for the car or home.

The timing of this news is no coincidence as in times of economic downturns and recession, the frequency of claims for many insurance products increases sharply, car insurance claims are no exception to this general rule of thumb.