Car insurance fraud scamming drivers out of £15,000 with urgent warning issued
The average value of insurance scams is increasing
PEXELS
The Association of British Insurers has insisted that it will not back down from cracking down on car insurance fraud.
This comes as data has shown a huge 19 per cent fall in the number of fraudulent insurance claims last year.
However, the value of the average scam has increased to £15,000, a rise of 20 per cent compared to 2021.
Car insurance continues to make up the largest volume of fraud cases at 42,500, representing a staggering 59 per cent share of total insurance claims fraud.
Industry experts have vowed to continue the crackdown on insurance fraud
PA
One fraudster was jailed for four years after cloning the identity of a claims management company to arrange insurance for elderly drivers, worth £26,000.
A second scammer sold fake car insurance as a ghost broker, attempting to steal around £50,000 from motorists.
Detective Chief Inspector Tom Hill, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), warned scammers that the crackdown on fraud would continue.
He said: “Whilst it is positive to see that detected insurance fraud rates fell in 2022, the increase in the average value of fraud shows that both IFED and the insurance industry cannot afford to take our foot off the pedal when it comes to uncovering and disrupting fraudsters.
“Insurance fraud is never simply taking money from a company that can afford it.
“Many victims of insurance fraud are members of the public, from people who have their identities stolen to help facilitate fraud, to people who have unknowingly bought fake motor insurance from ghost brokers.”
This comes just weeks after average car insurance prices hit £511, a dramatic rise of 21 per cent in just 12 months.
The ABI said cost pressures were the reason for the increase, with insurers being forced to pay out £2.4billion in all motor insurance claims.
Mark Allen, the ABI’s Assistant Director, Head of Fraud and Financial Crime, said: “While it is good to see the industry’s collaborative efforts delivered results in 2022, there can be no room for complacency.
“With many households and businesses continuing to face rising costs, now more than ever honest customers expect insurers to weed out the cheats and focus on paying genuine claims as quickly as possible.”
With the prevalence of the various types of insurance scams, fraud is now the most reported crime in England and Wales.
Mark Allen added that there would be “absolutely no let-up” in pursuing those who prey on vulnerable drivers with sophisticated insurance scams.
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Fraud is the most reported crime in England and Wales
PEXELS
Motorists are being urged to never act in haste to avoid the potential of being scammed, with experts saying if the offer sounds too good to be true, then it probably is.