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Experts have always argued that increase in car insurance costs are hugely due to fraudulent cases where collisions are well-planned just to get payout from UK car insurance providers. Digging into detail, it was discovered by the Insurance Fraud Bureau (IFB) that top UK cities are the breeding grounds for such frauds. Cities like Birmingham, Manchester, Oldham and Bradford are amongst the top ten places with maximum ‘crash for cash’ frauds.
Top UK cities are breeding grounds for fraudulent car insurance claims, says IFBAccording to the Insurance Fraud Bureau, Birmingham tops this list this year with half of the fraud cases reported out of the top ten cities that face the ‘crash for cash’ crime. Insurance giant Aviva named it the ‘crash for cash’ capital last year in the wake of the fact that it received 3,000 fraudulent claims from Birmingham. No wonder, drivers in the second biggest city of UK cannot even think about cheap car insurance premiums.
Statistics revealed by the IFB claims that UK car insurance providers make payout of £336m a year to these fraud drivers who show bogus injury and credit hire claims. IFB director Ben Fletcher expressed his disappointment by saying that “These scams may seem to some to be a harmless way to beat the system and get an easy pay out with minimal risk. The reality is that not only do those people now stand a very good chance of getting caught and facing the consequences, but these scams put other motorist’s lives at risk.”
He added that “Fraudsters are taking vehicles out on public roads and forcing innocent people into needless collisions. Not only does that present a real risk of injury, but sadly we know of at least one fatality that has occurred as a result of these incredibly dangerous and reckless incidents.” These crimes are the biggest reasons why sincere drivers are deprived of cheap car insurance premiums.
Amidst the controversy that UK car insurance providers blame whiplash for increase in car insurance premiums when they are still making huge profits, such a report from IFB works in favour of motor insurance providers. It clearly suggests that such fraudulent cases are to be blamed if sincere drivers are not getting cheaper car insurance premiums. The government needs to take quick action to sort out these issues on a permanent basis otherwise; genuine drivers would suffer not only from increasing car insurance costs but also from severe fatalities.
Such reports clearly suggest that there are many factors responsible for the increase in car insurance premiums. Even if the motor insurance provider wants to offer cheaper car insurance deals, they may not do so just because they can’t put up with losses made by paying out to fraudsters which may throw them out of the car insurance industry.
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