Fraudulent car insurance claims on the increase

Car insurance companies are having to deal with high levels of fraudulent claims, according to new figures.

Figures released by the Association of British Insurers (ABI) show that 24,000 fraudulent car insurance claims were made in the last year as motorists attempt to gain a quick buck.

The claims totalled costs of £260 million and the problem is an increasing one, with the number of fraudulent claims going up by 70 per cent in the last three years.

And other motorists will suffer, as companies hike up the costs of average car insurance to cover themselves for the loss of the pay-outs.

Nick Starling, director of general insurance and health at the ABI, said: "Insurance fraud is no victimless crime. Honest motorists pay through higher insurance premiums - an extra £40 a year on average. This is why insurers are ramping up their crackdown to weed out the cheats.

"Anyone committing insurance fraud is more likely to get caught, risks a criminal record, and will find future insurance and credit harder to obtain and more expensive."

One policyholder claimed £10,000 for the theft of the front grill, hubcaps, seats and other parts of his Rolls Royce, but police found them all stashed in his home and he received a criminal conviction.

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