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Insurers are detecting more fraudulent claims

3rd July 2008

The insurance industry is getting better at detecting car insurance fraud, a new report has claimed.

New data from the Association of British Insurers (ABI) showed that over 24,000 fraudulent car insurance claims were detected last year.

In total these claims were worth £260 million - or £5 million every week.

According to the ABI, there has been a 70 per cent increase in the volume of car insurance fraud detection over the last three years.

Nick Starling, the ABI's director of general insurance and health, commented: "Insurers are ramping up their crackdown to weed out the cheats.

"Anyone committing insurance fraud is more likely to get caught, risks a criminal record, and will find future insurance and credit harder to obtain and more expensive."

Mr Starling added that fraud stopped legitimate drivers from enjoying cheap car insurance. He said fraudulent claims typically added £40 a year to a policy. ADNFCR-1602-ID-18668758-ADNFCR