Car insurance coverage fraud types exposed in a new research study
The different kinds of cars and truck insurance coverage fraud in the UK have been exposed in a new research study that shows fraudsters are most likely to utilize low-speed accidents to seek compensation.
According to Churchill Insurance, cars and truck insurance coverage fraud is on the rise with low-speed accidents now accounting for over a third of all insurance coverage fraud (see table below). The report also identified fraudsters are increasingly claiming compensation for non-existent passengers. declares for “phantom passengers” grew to eight per cent last year, up by two per cent from 2015.
Advertisement – article continues below
Data from the association of British Insurers exposes there were some 70,000 situations of motors insurance coverage fraud in 2015, accounting to 192 instances every day. Fraudsters continue to scam the market for approximately £800 million a year, with an typical payout at a whopping £11,428. insurance coverage fraud is estimated to add £90 to the expense of an typical policy for honest drivers.
• new measures aim to deal with cars and truck insurance coverage fraud
Last year the government revealed new plans to kerb insurance coverage fraud by introducing declares caps for minor whiplash injuries. The new measures are expected to save motorists £40 on their insurance.
The government has likewise increased the upper limit for the little declares court for personal injury declares from £1,000 to £5,000.
Fraudulent insurance claim type
% of fraudulent declares in 2016
Low-speed impact (when both vehicles collide at low-speed e.g. in a cars and truck park)
36%
Organised fraud rings
15%
Phantom passenger (when the claimant was not in the vehicle at the time of the collision)
8%
Induced road web traffic mishap (RTA) (when one motorist intentionally triggers the mishap – for example, by slamming on their brakes – as well as the innocent other celebration collides with the vehicle)
8%
Staged road web traffic mishap (RTA) (where both vehicles are complicit in the fraud e.g. the mishap may have been staged)
7%
Exaggerated loss/ damage (when an mishap occurs as well as the claimant exaggerates the circumstances)
3%
Indemnity/policy issues (when the client has lied when taking out the policy)
2%
Mark Chiappino, counter fraud manager at Churchill said: “Fraudulent cars and truck insurance coverage declares are on the rise, as opportunists try their luck at making exaggerated declares after a authentic mishap or reporting injuries to phantom passengers, which have a knock-on monetary impact on innocent customers.
“When included in a collision, whether it’s your fault or that of one more driver, try to gather as much info at the scene to make the declares process easier. If you are included in an mishap as well as it is risk-free to do so, it is advisable to take down the get in touch with as well as insurance coverage details from the other motorist, take pictures of any type of damage triggered as well as get in touch with details for any type of witnesses.”
Have you ever witnessed insurance coverage fraud? tell us in the comments below…