Car Insurance Premiums Soar 30% Due To Fraudulent Claims

Cash For Claims Car Insurance ScamCar insurance premiums are seeing their fastest-ever increase on record, according to findings by the AA.

Experts are warning that the increased number of fraudulent or bogus claims are responsible for the soaring costs of car insurance premiums.

Such scams often involve groups of motorists who agree to stage various ‘cash for crash’ accidents, and then splitting the proceeds of any insurance payout.

Due to the increase in fraudulent claims, the AA has revealed that over the last year alone, comprehensive car cover has increased by more than 30% and warns that the costs will continue to climb.

The director of AA insurance, Simon Douglas, has commented that ‘I won’t be surprised if, by the end of 2010, we’ll have witnessed an unprecedented 50 per cent rise in just two years.’

Of the many fraudulent claims that insurance companies have to deal with, one of the most common frauds involves personal injury claims. These often involve inventing whiplash injuries or exaggerating the effect of a minor accident.

With over 1 million motorists in the UK still driving without insurance, the AA warns that further increases in car insurance premiums could cause the number of uninsured drivers to increase further.

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