Young driver insurance news
10/01/2011
Cheap quotes hit by fraud
It has long been known that it is very difficult to find a cheap quote for young driver insurance – however, the Association of British Insurers has recently revealed why it is so difficult for many younger motorists to find a cheap motor insurance quote.
According to the organisation, car insurance companies receive an average of 108 fraudulent or bogus claims each day, with an unconfirmed number of these made on young driver insurance policies.
Nick Starling, the ABI's director of general insurance and health commented, "Insurance cheats do not prosper - they can expect to get caught, face problems getting future insurance and risk getting a criminal record.
He added that the actions of fraudsters come at a considerable cost to honest policyholders. "The majority of customers are honest and rightly object to subsidising the cheats. Insurance fraud adds an extra £44 to the average UK household's annual insurance bill," he said.
"This is why 2011 will see insurers intensify their war against the cheats, to protect their honest customers."
Furthermore, the ABI revealed some of 2010's more bizarre fraudulent car insurance claims, such as that made by a man who claimed his car was damaged while parked outside his house – it later transpired that he had crashed his vehicle while participating in a motor race in Germany.
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