Fraudulent Claims Practices Raise Car Insurance Premiums to Record High
Fraudulent Claims Practices Raise Car Insurance Premiums to Record High

As said by AA, an increased instance of making fraudulent claims from motor insurance firms have prompted a record high levels seen in  last three months by 11.5%. The price of a standard car insurance premium, at present, is around £704, which increased by a record level of 30.9% over the preceding year.

The AA said that in a mere matter of 3 months, the premiums increased on a standard basis by 11.5% and for drivers belonging the age group of less than 30, by 13.4% to £1,128.

Director of the AA, Simon Douglas said that the websites actually make a lot easier for individuals to offer manipulated information, so as to get lower premium and as a result insurers are more and more charging higher prices from the genuine policyholders, in order to cover up the elevated risk of fraudulent activities that they face.

He said that the growth of price in comparison to the sites has mainly encouraged fraud, even though a lot of people did not consider it to be this way.

Manipulating information and details on computer screen is actually easy and also, the cheapest way to do so.

Mr. Douglas said that insurance providers were bringing new techniques to tackle fraudulent applications.

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