Young driver insurance news
30/04/2009
Fraudulent car and other insurance claims rising
Cheap car insurance for young drivers is at risk as new figures reveal that fraudulent cover claims are at their highest ever level.
Across the entire insurance industry, about 2000 fraudulent claims are made every week - equivalent to 12 false claims each hour.
Fraudulent claims include motor cover. One driver claimed his vehicle was stolen after he had been mugged. However, it was subsequently discovered that he had sold his car to a friend.
Nick Starling, Director of the Association of British Insurers, said: "Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats.
"Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers."
With some £730 million of fraudulent claims made last year, the cost of that can impact cheap car insurance for young drivers as well as the entire range of insurance available in the UK.
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