Car Insurance Fraud Drops 16%
Research published by information and data company Experian has revealed that attempts to commit insurance fraud reduced by 16% between April and June 2012.
Research from Experian revealed that 10 out of every 10,000 applications for insurance policies were found to be fraudulent during the period between April and June 2012, compared to 12 out of 10,000 for the same period last year. 86% of the attempted fraud cases were reported as having been committed by first-party fraudsters using their own identity and providing incorrect information about their circumstances.
The report showed that it is not only insurance that has benefited from a reduction in attempted fraud. The financial services market as a whole has seen a 3% decline year-on-year. The areas that have seen the most improvement though are insurance and motor finance providers.
This could be encouraging news for those drivers trying to seek out cheap car insurance. If fraud levels continue to decrease insurance providers could start to re-coup some of the costs paid out on fraudulent claims, which could also have a positive effect on premiums.
Andrew Goulborn, Commercial Director for car insurance comparison site Tiger.co.uk, commented: “This is definitely encouraging news for the insurance industry, but whether or not it will have a positive implication for the UK’s honest motorists remains to be seen as it is very early days. Fraud is a substantial problem for the industry. The Association of British Insurers estimates that undetected insurance fraud claims total £2.1 billion a year, which costs individual policyholders an average of around £50 a year on their premiums. This is certainly good news but, as ever, we would recommend that drivers compare car insurance using sites like Tiger.co.uk to shop around for the best deal available to suit their individual circumstances.”