Economic receession blamed for the rise in fraudulent claims
In 2011 122,000 fradulent insurance claims were uncovered according to a study carried out by the Association of British Insurers making a total of £849,000,000. This is a 14% increase on 2010.
A further £2.1billion fraudulent general insurance claims go undetected a year which is believed to add between £40-90 to the annual costs of individual policies.
Industry experts have pointed the finger at the economic recession, blaming the downturn as the main reason for the increase in fraudulent claims causing more people to turn to illegal earnings.
As a result it is becoming increasingly difficult for younger drivers to afford the cost of running a car. The government insists It is looking at ways to further bring the cost of insurance down for young people.
It is thought that too many claims are settled outside of court because to put it simply - it's cheaper! The government would like to look into ways of introducing independent medical panels. Further to this they have improved the driving test and by putting black boxes in people's vehicles can help towards reducing insurance premiums too.
22.06.2012 - Emma Westley