According to Cifas, a fraud prevention membership organization, data provided by its many members has revealed that there has been a very large increase in the number of fraudulent motor insurance claims. Potentially, this is something that could play a part in an insurer deciding that it needs to increase the amount it is charging its policyholders for their cover.
Unfortunately, in the space of a year between 2017 and 2018, there has been an increase of 45% in the number of identified fraudulent motor insurance claims based upon figures provided by members of Cifas.
It is motorists in the 21 to 30 years of age group that have been involved in a larger proportion of such claims.
There are no doubt many types of motor insurance claim frauds such as those involving crash for cash claims and another person claiming they were driving the vehicle when in fact it was someone else.
On a positive note, the number of fronting cases has fallen. This is where a motorist, when applying for motor insurance, claims that he or she will be the main driver when in fact it is someone else who will spend more time behind the wheel of the car who is, for instance, a much younger, inexperienced driver, who, if he or she had been named as the main driver would have resulted in a higher motor insurance premium being paid.
If someone is caught fraudulently submitting a claim for motor insurance then the consequences could be severe. For instance, the person involved could be sent to prison, fined and may have difficulty obtaining motor insurance for many years to come. If he or she is able to find an insurance company that will provide cover then it is quite likely that the premium will be an awful lot more than he or she would normally expect to pay. We hope that you found the above to be of interest.