Over 4,000 false claims each week say insurers

Thursday, August 13, 2015

 

Over 4,000 fraudulent motor insurance applications are made each week according to figures from the insurance industry.

Association of British Insurers (ABI) research found that in 2014 insurers uncovered 212,000 attempted dishonest applications for motor insurance, up 18% on 2013 and equivalent to just over 4,000 every week.

The association said that thousands of motorists were paying a high price, in some cases driving illegally, by cutting corners when buying motor insurance with common lies including  ‘forgetting’ to disclose previous claims or unspent convictions when asked, giving a false address or post code for a lower risk area, and parents insuring in their name a vehicle being mainly driven by their son or daughter - commonly known as ‘fronting’. 

Last year over 1,500 reports to the Insurance Fraud Bureau’s ‘Cheatline’ related to motor insurance application fraud- nearly a quarter of the total calls received.

ABI fraud and financial crime manager Mark Allen (pictured) said: "Insurers recognise that innocent mistakes and oversights happen. But anyone lying to get cheaper motor insurance, or tempted by cheap insurance offers without first checking that they are genuine, risks driving illegally. 

“The consequences include getting a criminal record and a massive financial headache if found to be at fault for a crash. The risks are just not worth it – especially when you can shop around for the right policy at the lowest price.”

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