With fraudulent and exaggerated claims continuing to represent a major problem for insurers, potentially impacting premiums for all drivers, tales of false claims and crash for cash scams are common.
However, new figures have been announced by broker Kwik Fit Insurance, which highlight the struggle that insurers face to combat these criminals, as 8% of drivers have admitted to committing insurance fraud and a further 6% would in fact consider twisting the truth in order to cut their renewal premium.
These new figures add to the difficulties that insurers are facing in stamping out fraud in the industry especially amongst younger drivers. Sometimes unwittingly, 19% of drivers in the 18-34 categories have admitted to giving their insurers false information, with 88% of those in the category unaware that this constitutes fraud.
This is in comparison to just 3% of 55+ year olds who have admitted to giving false information.
Paul Ewen, Head of Insurance Technical Services at AGS Risk Solutions, says these figures highlight a need for insurers to continue targeting their campaigns at younger drivers in order and inform them about the risks of providing false information.
"The potential ramifications are significant; not only can these actions result in criminal convictions for fraud, but drivers could be putting themselves of their passengers at risk financially by not having adequate levels of cover,"
"This highlights a continuing struggle facing the industry, but with the assistance of the Transport Select Committee's recommendations on fraud and the cost of motor insurance, insurers are hopeful that reducing the level of fraudulent claims is possible."