The bite of the recession seems to be pushing people to extreme lengths as some drivers have been caught falsely claiming on their car insurance to rake in some cash.
According to research from Moneysupermarket.com, a worrying number of motorists have admited to staging a crash to claim on their car insurance or have considered staging an accident. The research shows that over a million desperate people would consider doing such a thing.
But it’s not fair on those policy holders that are honest. Fraudulent insurance claims cost the industry over £4 million every day according to the ABI. This adds nearly £40 to the average annual premium paid by innocent policyholders.
The plan to falsely claim could however backfire, costing you more money in the long run. If you are found guilty for making a false car insurance claim, an official ‘fraud mark’ could be added your license. This will allow your insurer to know that you can’t be trusted and they will most likely stop offering you cover. The mark is likely to blacklist you amongst other car insurance companies too or leave you with only very high car insurance quotes.
There are three types of car insurance fraud that are recognised in the motor insurance industry;
- Staged car accidents – 2 vehicles deliberately knock into each to claim on insurance
- Contrived car accidents – a fabricated claim for a car accident that didn’t actually happen
- Induced car accidents – a deliberate action by a driver that forces an innocent driver to crash into them – such as stopping suddenly so the innocent driver crashes into the back of them.
As Steve Sweeny of moneysupermarket.com says ‘Organised motor fraud not only costs the insurance industry millions, but risks the safety of innocent drivers, passengers and pedestrians.
Any motor insurance claim proved to involve an organised accident will be considered as fraudulent by an insurer, and is likely to have drastic, long-term affects on your motroing as a consequence’