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Fraud pushes up car insurance premiums to record levels

July 29, 2010

Fraud pushes up car insurance premiums to record levels

Insurance brokers are trying their best to help car insurance customers in the face of the increasing number of frauds that have gripped the industry.

The British Insurance Brokers Association (BIBA) has confirmed its commitment to extend its fullest assistance to honest motorists who find themselves at the wrong end of care insurance frauds.

These fraudulent claims are hitting drivers hard by increasing the insurance premiums levied by providers, making it difficult for car owners to seek out adequate cover for their vehicles.

Graeme Trudgill, technical and corporate affairs executive for BIBA, said: "We don’t want innocent people to foot the bill and do all we can to help with that matter."

However, he pointed out that there was not much that could be done by brokers as insurance premiums are conducted on a strategy that took into account potential risks.

Although, motorists cannot be sheltered from the consequences of the rising motor frauds, car insurance does go a long way in protecting the owners.

Mr Trudgill emphasised that all drivers were treated equally during the brokerage procedure and intermediaries make extra effort to ensure complete customer satisfaction.

He added: "Insurance is fair to people and is very, very specific to the individual," he explained.

His comments follow in the wake of recent statistics made public by AA Insurance, which revealed that premiums for car insurance had seen their largest ever increase in the last quarter of the present fiscal year.

Owing to car insurance fraud, the AA British Insurance Premium Index registered an 11 per cent rise, which was the highest since the records had begun.

The average car insurance premium was registered as £704 for a complete annual policy. The rise was even more skewed for policies bought through price comparison websites, which registered a 12.7 per cent rise.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

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