Car insurance fraud 'substantially up'

Car insurance fraud has risen substantially in recent years, with both organised crime and false claims from normally law-abiding motorists on the up, an insurance company has claimed.

According to insurance provider Direct Line, both premeditated and opportunistic instances of motor insurance fraud have increased significantly, pushing up premiums as a result.

Emma Holyer, a spokesperson for Direct Line, said that organised fraud rings that take out multiple policies on one car that they deliberately crash before claiming personal injury costs are rife today.

"They may crash into an 'associates' car and then they lie and say the car had passengers in it which also claim for PI costs," she explained.

However she said that motorists who otherwise obey the law are also driving the increase in insurance fraud by making dishonest claims when they do have an accident, such as a rear end shunt.

"They claim they have suffered injuries - such as whiplash - and claim from the other insured," she said.

The rise in car insurance fraud coincides with an increase in car insurance premiums. Figures from Sainsbury's Bank show that the average car insurance premium rose by 2.1 per cent over 2006 to £472.52.


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