Commonplace Car Insurance Scams: The Cost of Motoring

The cost of driving can be difficult to quantify, especially when you consider factors such as purchasing price, insurance premiums and long term maintenance. It can be even more difficult when you consider the impact of fraudulent insurance claims and activity, which continue to inflate the cost of premiums for honest, law abiding motorists. According to the AA, the average annual premium in the UK has increased by 89pc to £840 since 2009, with false and dishonest claims thought to be the  primary reason behind this increase.

The 3 Top Car Insurance Scams: Remaining Vigilant as a Motorist

With this in mind, it is worth appraising the most prominent car insurance scams in contemporary Britain and their impact in the market. Consider the following: –

Causing Intentional Accidents

Although this is a long standing insurance scam in the UK, fraudsters continue to contrive deliberate accidents with the intention of making a profitable claim. This often involves unwitting and unsuspecting motorists, however, so it is crucial that you remain vigilant as a driver at all times while on the road. Whether a fraudster deliberately crashes into the back of your stationary vehicle or gives way only to then pull into traffic and force a collision, however, these simple tactics can be extremely effective and particularly hard to identify as being premeditated.

Staged Car Thefts and Vandalism

For fraudsters who are looking to make a significant car insurance claim, staged thefts or the report of third party vandalism are common triggers. Often motorists simply abandon or dump their car and then report it stolen, while some claimants have been known to significantly damage or set fire to their vehicle before making contact with the police. Once the theft or damage has been investigated and verified, the claimant is then free to contact their insurer and seek financial remuneration, often at the expense of honest motorists

The Fraudulent Hit and Run Claim

This common insurance scam may not always be premeditated, as motorists who accidentally damage their vehicle through reckless driving may also claim that the impact was made by a hit and run driver. It is predominantly used by experienced fraudsters, however, who intentionally damage or write off their car and then claim that they collided with a vehicle that failed to stop. This can be exceptionally hard to disprove in rural locations or areas without extensive CCTV, and it has a considerable impact on average insurance premiums throughout the UK.

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