Clampdown on Bogus Claims Reduces UK Car Insurance Premiums

A clampdown on bogus claims as insurance companies work with enforcement agencies to reduce the amount of fraudulent claims has caused car insurance policies to come down by 12.4% in the past year.

Honest Motorists Have Paid the Price in the Past

‘Crash for cash’ and ‘flash for cash’ are terms you’ve probably heard a lot about lately. These scams involve drivers deliberately causing car crashes by either slamming on their brakes to cause the car behind them to crash into them, or flashing another car out at a junction and then deliberately causing an accident.

According to Simon Douglas, director of AA Insurance, ‘honest motorists have been putting up with their premiums being affected by false or exaggerated injury claims for far too long.’

Price Drops for All

The group that has seen the biggest drop is those aged 23-29, marking the most significant reduction in car insurance premiums since 1994. Young drivers (aged 17-22) and older drivers (aged over 70) have seen the smallest change, although they will still see a reduction of 4.6% and 4.8% respectively.

These savings come as insurers are anticipating the cash they expect to save as a result of the industry’s crackdown on bogus claims, so it’s good news all round for honest drivers.

Bogus Whiplash Claimants Also Targeted

Whiplash injury fraud is also becoming a focus for industry crackdowns after it was estimated that the 500,000 false whiplash claims made last year added an extra £90 to drivers’ insurance policies.

As of next year, whiplash cheats will be targeted by independent medical panels that will only consider evidence from accredited doctors in an attempt to target the fraudsters that have caused higher insurance premiums to become the norm.

According to James Dalton, the head of motor and liability at the Association of British Insurers, ‘setting up independent panels of accredited experts will help the UK shake off its reputation as the whiplash capital of Europe.’

More Good News to Come

On top of the falling price of car insurance premiums, it’s likely that we’ll see another drop in costs next year once the crackdown on bogus whiplash claims is rolled out.

This can only mean good news for honest motorists who have been plagued by expensive premiums in the past, and hopefully all age groups will experience another significant drop in the price of their car insurance policies.

To keep up to date with news stories surrounding the subject, check out the One Sure Insurance blog here.