How Insurance Fraud Affects You

If you have tried to renew your home or caractivities but you are also paying to cover the
insurance recently you may well have noticedUK's growing number of uninsured drivers.
insurance premiums starting to increase. One ofWith these two factors forcing up the cost of car
the main contributing factors in this increase is ainsurance it is no surprise that some people are
rise in fraudulent insurance claims.noticing a rise in their premiums. These price
Fraudulent claims are made mostly on home andincreases are commonly found in the renewal
car insurance policies and according to theletter sent by your insurance company.
Association of British Insurers false claims cost UKHowever, rather than simply accept the increase
insurance companies some £1.6billion a year.you have the option to act and switch you car
So how does this affect you? While insuranceinsurance to another provider. The car insurance
companies have indicated a commitment tomarket is fiercely competitive with companies
tackling the issue the fact remains that theeager to increase their customer base. You, the
problem costs them around £4million a day.customer, can use this to your advantage. An
This loss has to be recouped in some way and inonline search for car insurance can quickly illustrate
many instances is passed onto the consumer. Youthe possible savings you make by moving to
are effectively paying for the fraudulent actionsanother insurance company.
of other people; on average the impact ofIf, like many other honest individuals, you are
fraudulent claims adds around £40 onto yourunwilling to pay for other people's insurance fraud
insurance premiums.you can put pressure on your insurance company
When it comes to car insurance you areby switching your motor insurance to another
effectively being hit with a double whammy. Notprovider. You could even make a worthwhile
only are you paying for other peoples fraudulentsaving in the process.