Frauds Pertaining to Car Insurance behind the Increase in the Insurance Premium
July 27th, 2010 | by William Wright |The last few weeks have seen a tremendous untold increase in the car insurance rates. Experts believe that one of the premium reasons behind this rise is the increasing number of fraudulent cases of exaggerated injury claims. The April and June statistics show a 12 percent increase in the costs of the comprehensive car insurance cover indicating a further increase in the coming months.
It seems like an added injury for car owners mounting on top of the increased fuel prices as well as the taxes levied on the car insurance premiums. If you compare car insurance, you are likely to end up realizing that the cheapest of the comprehensive insurance quotes have increased by as much as 11.5 percent in a short period of three months as compared to the last quarter when the value was at €704. The monitoring done by the BIPI or the British Insurance Premium Index claimed this value increase as the highest in its sixteen years of tracking. The third party car insurance policy, a hit among the young drivers also showed a marked increase of 16 percent.
These values were established even when there was a relative fall in the number of accidents and vehicle-related crimes. A latest survey reveals that people have resorted to staging accidents for raising money during the recession while the survey also indicates there is a gradual decrease in the vehicle-related crimes, other crimes such as providing the wrong information in a car insurance cover or claiming for injuries which are non-existent have picked up during the year.
Some other practices of dishonesty comes with the advent of online insurance where the applicants have deliberately and regularly provided the false information to get hold of a cheap car insurance. Sites to compare car insurance policies and quotes have nonetheless eased down the process of getting car insurance but they have also added to increased manipulated information as well as increase in the risks of fraud.
Unless, people resort to subside the insurance frauds, the price rise in bound to continue, affecting them in turn.
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