We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
Car insurance scammers may pose a direct threat to road users in a desperate bid to secure personal injury payouts before tougher measures are introduced. Analysis from the ABI has found that 75 percent of fake motor claims contained a personal injury element this year.
The ABI says this may “reflect” on a change of fraudulent activity ahead of personal injury rule changes.
In a bid to make fake claims more difficult to pull off, the government has stated that medical evidence must soon be supplied before payouts will be offered.
Cost savings could then be passed back into genuine customers in the form of cheaper premiums.
Early estimates have shown that customers could see an average saving of up to £50 per year from their insurance bills after the change is introduced.
However, this could inadvertently force fraudsters to commit more crimes this year before the legislation is changed.
Crash for cash scams are common as fraudsters simply hit another vehicle on purpose before claiming back personal injury compensation on the victim’s insurance.
Detective Superintendent Peter Ratcliffe, Head of the City of London Police’s Economic Crime Funded Units said because of this insurance fraud was not a “victimless crime”.
He said: “Insurance fraud is not a victimless crime and the effect of dishonest claims are felt by everyone.
Online car sales could put drivers at ‘risk’ of being scammed [INSIGHT]
Car leasing scam as fraudsters advertise fake policies [ANALYSIS]
DVLA confirm new car tax message is a scam [COMMENT]
“As well as bogus insurance claims inevitably increasing premiums for honest customers, certain tactics used by fraudsters, such as ‘crash for cash’, put the lives of innocent members of the public at serious risk.”
He added: “The fight against insurance fraud is an ongoing one, so we need to continue working together to prevent and detect this crime type, and ultimately bring the criminals involved to justice.”
Analysis from the ABI has found that motor insurance fraud remains the most common type of insurance scam in 2020.
Fraudulent claims were up six percent compared to data from 2018 although total payouts have fallen slightly.
Mark Allen, ABI’s Manager of Fraud and Financial Crime has warned that genuine customers would end up “footing the bill” for illegal activities.
He warned customers would pay “through their insurance premiums” which are often increased to pay for debts owed through false claims.
Mr Allen has warned that customers should remain “on their guard” to prevent being unfairly caught up in illegal activity.
He said: “The industry makes no apology for its relentless pursuit of insurance cheats, to protect genuine customers, who end up footing the bill through their insurance premiums.
“Insurers will not hesitate to ensure that fraudsters seeking to profit at the misery and expense of others will suffer severe and long-lasting consequences.
“Insurers know that the Coronavirus crisis has led to financial hardship for some, and with scammers always preying on people’s anxieties.
“Now it is especially important for consumers to be on their guard, for scams like being approached by someone offering cheap motor insurance.
“The golden rule is never act in haste – if a deal is too good to be true, then it probably is.”
Source: Read Full Article