A recent report by MP’s in the UK has highlighted the fact that the cost of car insurance is being driven up by some policy holders staging car accidents and then submitting false claims to their insurance company.
The report was released by the House of Commons Transport Committee. In the report, the committee recommended that a dedicated police unit should be established in order to combat the problem with insurance fraud.
The AA recently announced that the monthly premiums on their comprehensive car insurance policy increased by 30% when compared to October 2010.
Louise Ellman, chair of the Transport Committee, observed that the growing number of “staged accidents” have not yet caused any fatalities by “luck” and added that the sector must therefore “act rapidly” to avoid any further escalation.
This notion has been supported by the British Insurance Brokers’ Association, which has spoken of its commitment to help the government.
This is a huge problem which could have serious repercussions for future car insurance policy holders. If this trend were to continue then insurance premiums could increase across many different car insurance policies.
