Insurance fraud higher than ever at 2,300 claims a week Go compare with our comparison table

Insurance fraud higher than ever at 2,300 claims a week

25 July 2010 / by Rachael Stiles

Insurance providers are detecting more than 2,300 fraudulent claims every week – the highest figure on record – according to the Association of British Insurers.

The latest figures on insurance fraud from the ABI show a rise on last year, when 122,000 fraudulent claims were detected each week – worth a total value of £840million – a 14 per cent rise on 2008 figures.

Of the record high number of insurance claims – worth more than £16million – car insurance fraud accounted for the highest value, worth around £140million.

False home insurance claims were the most prevalent, totalling 62,000 bogus or exaggerated claims.

By cost, the ABI calculated that four per cent of all insurance claims were fraudulent, twice as much as five years ago.

False personal injury claims also accounted for a significant proportion of the 8,500 dishonest liability claims that were detected by insurance companies.

Some of the false claims included a fractured hand which was supposedly caused when the claimant fell over a pothole but was actually the result of punching a wall following a domestic dispute.

Another customer claimed to have sustained injuries by tripping over a loose pavement, when they were actually a result of jumping down a flight of stairs to evade security guards following a suspected case of shoplifting.

Nick Starling, director of general insurance and health at the ABI, said that theinsurance industry is doing what it can to prevent fraud and the negative effect his has on honest policyholders' premiums.

"Reducing fraud remains an ongoing battle for the insurance industry. Our honest customers rightly object to having to pay higher premiums to subsidise the fraudulent minority, which is why insurers continue to up their game in the war on the cheats."

Committing insurance fraud is a serious business, and has consequences for the fraudster as well, Mr Starling added: "Whether claiming against a third party for bogus personal injury or on their own insurance, fraudsters are more likely than ever to get caught, leading to more expensive and harder to obtain insurance and credit, and the possibility of a criminal record."

© Fair Investment Company Ltd

ProviderSpecial OffersGet Quotes

5 Star Car Insurance from £196* - You could save up to 20% online.
10% of customers are expected to receive the maximum saving.

Get Quotes >
Save up to £917 on Car Insurance**.

Multicar discount - minimum premiums apply. Guaranteed Hire Car cover comes as standard with our comprehensive motor insurance. Underwritten by U K Insurance Ltd

Get Quotes >
Car Insurance from £190.
10% of new customers paid £190 or less (Aug '15 – Jul '16). Key features of comprehensive cover: Courtesy car included, European cover, Uninsured driver promise, £30 off car insurance available to current account customers, up to £200 personal belongings cover, UK-based call centres. Nationwide car insurance is provided by Liverpool Victoria Insurance Company Limited (LV=)
Get Quotes >

97% of customers would buy again from LV= (verified by Reevoo)

Benefits include UK call centres, 24/7 claims helpline, unlimited cover for factory fitted phone, audio and sat nav equipment, and replacement child car seats. Plus optional extras, such as motor legal expenses, guaranteed courtesy car, European car insurance cover, increased personal accident cover and breakdown cover.

Get Quotes >

Don’t get caught out when you break down. Churchill offers free breakdown cover to new Motor customers
First year Breakdown service (roadside only), provided by Green Flag, new policies only. Excludes N.I . Breakdown chargeable at renewal. Underwritten by U K Insurance Limited. Terms & conditions apply

Get Quotes >

Save 15% Online††
No claims discount up to 75%.

Get Quotes >

Saga Car Insurance is designed for drivers aged 50 and over. Comprehensive cover is available from just £120 a year***.
With a Comprehensive policy you'll benefit from the following as standard: Uninsured driver cover, Vandalism cover, Up to £1,000 personal belongings cover, Cover for driving in the European Union for an unlimited period.

Get Quotes >
New customers can get 12 months' breakdown cover for the price of 6 when they buy AA Car Insurance. You also get access to member benefits, including up to 20% off at Moto service areas. Get Quotes >

Get Comprehensive Car Insurance Quotes Online.

Get Quotes >
Free Annual Roadside Assistance and Recovery Breakdown Cover worth £49.
Over 50s save at least £50.
Get Quotes >
5 Star car insurance from £222***
Uninsured driver promise. Courtesy car as long as your car is being repaired.
Get Quotes > compare prices from over 130 motor insurance providers to find you their best dealGet Quotes >
Save up to £230 on your car insurance (51% of consumers could achieve a saving of up to £229.96 with car insurance based on a comparison of at least 40 companies)Get Quotes >