UK Facing Issues With Insurance Fraud
Car insurance fraud has become a huge problem in the United Kingdom. Car insurance companies are taking the helm so that they can track down criminals who are filing fraudulent insurance claims. Every week almost 2,700 fraudulent claims are uncovered by insurance agents and officials which show that this problem is one that will be hard to eliminate.
Criminals who commit this type of fraud cost insurers more than 19 million pounds. This kind of financial loss impacts not only car insurance companies but the drivers who have policies with them as well. The main way criminals are doing this is by committing crash for cash car insurance scams. This is when a driver will purposely stop suddenly to make someone hit them. The collision looks innocent but it is always staged so that a criminal can file an insurance claim saying that they have an injury such as whiplash when they do not.
It can be hard for insurance agents to be able to stop crime rings before they start.
The problem is one that had not been addressed well enough before. The punishment for this type of crime is not severe enough which is why so many drivers try these scams to make a quick buck.
Drivers in the United Kingdom are aggravated that they have to pay fifty pounds more for their insurance premiums due to instances of fraud. The country already has very high premium rates so many policy holders feel that being honest has gotten them absolutely nowhere. One crime ring of 37 people staged over 180 car accidents and filed 230 fraudulent claims. The problem is not going away because people become more and more savvy at finding loopholes to exploit. They also are able to stage car accidents in different cities and towns so that it is harder to track down who is committing these crimes.
One new way that the country is fighting fraud is to create something called the Insurance Fraud Register.
This is a register that will contain all of the names of people who have submitted fraudulent insurance claims. It is a very innovative way to embarrass those that have committed the offense. It will make it increasingly harder for people to get car insurance coverage if they have committed fraud. It can also reduce the likelihood of banks extending them lines of credit. If would be car insurance fraudsters are deterred by this register then it can help to reduce the number of fraudulent insurance claims that are being filed. This is a good first step at helping to reduce crime and make the country safer. Many drivers are suffering financially in the country so any efforts to reduce fraud are helpful.
