According to the Association of British Insurers (ABI), there was a reduction in the number of fraudulent claims received by motor insurance companies in 2015 in comparison to the previous year. We are sure that you will agree that this is good news for the industry. However, it is still the most common type of fraud.
Last year, dishonest claims in respect of motor insurance that were spotted amounted to 70,000 which is more than half of all types of fraudulent insurance claims which came to 130,000. It was pleasing to read that this was a reduction of 2% when compared with 2014. Nevertheless, it is still an awful lot of fraudulent claims and no doubt results in the honest motorist having to pay more than they should do for their motor insurance.
The monetary value of such fraudulent motor insurance claims amounted to £800 million that again is the highest amount when compared with all different kinds of fraudulent insurance claims that totalled £1.3 billion. It is pleasing to read that there was a reduction of 10% in the monetary value of fraudulent motor insurance claims in 2015 when compared with 2014.
It would be excellent news if this pattern in motor insurance fraudulent claims reducing would continue into this year and beyond. It would be interesting that if this were to happen would we see policyholders benefitting by a reduction in the premiums that they pay for their motor insurance. After all, many motorists have been faced with having to pay more for their car insurance in the last few months so anything that can be done to reverse this trend would be welcomed by motorists.
Unfortunately, too many people when they receive their renewal notices in respect of their car insurance just give the documents a cursory glance and then file the paperwork accepting that the premium is increasing for the next twelve months. Instead, it may have been to their financial advantage to have shopped around to see if they can get the same level of cover but for a lower premium with another insurance company.