Insurance Premiums To Fall As Fraud Comes To An End

There has been a growing number of British people who have been involved in car insurance fraud within the past few years as a result of the economic downturn.

However, insurance fraud could soon be set to come to an end as Brits become afraid of being caught out.

The end of the crash for cash scam?

The crash for crash scam is just one example of a fraudulent insurance scam, where drivers purposely stage accidents with innocent motorists in a bid to claim for compensation against their insurance.

Yet despite ongoing media awareness, according to recent research from the insurance provider, More Than, 41 per cent of drivers are unaware of what the scam is, while two thirds of those who were previously involved in an accident were not sure of whether it was the result of a crash for cash scam.

Pete Markey, a spokesperson for More Than said: "If more drivers were made aware of the dangers they are facing, it becomes more likely that they will be able to report anything unusual to their insurance company."

However, the ongoing crackdown on these fraudsters set up by insurance firms and police authorities during the past year has resulted in an 11 per cent decline in the number of crash for cash scams occurring.

Markey warned: "Not only does insurance fraud put innocent lives at risk, but it is also responsible for adding about £40 to the average honest policy holder's premiums so it's in everyone's interests that we make it harder for crooks."

However, thanks to a fraud buster team, car insurance customers could soon see their insurance premiums fall significantly while the car insurance industry could see a major decrease in the number of fraudulent claims made.

Fraud buster team to wipe out fraudulent claims

Car insurance provider, Groupma recently stated that it is planning to tackle fraudsters with the use of a fraud busting team where those who are believed to be filing a false claim will be put through a cognitive interviewing process.

The claimants will then be asked a number of questions, which will determine whether the claim is genuine.

According to the insurance provider, British motorists who are submitting fraudulent claims are more likely to withdraw their claim of they are told to participate in receiving a detailed questioning.

Stephen Teeling, Groupama's counter fraud manager said: "In recent years [cognitive interviewing has] been used successfully in helping the insurance industry identify fraudulent claims.

"It is a highly skilled process that draws on a range of factors including tone and speed of voice to help determine the likelihood of the claim being dishonest or exaggerated.

"Whilst the prime objective is to quickly identify claims that could be fraudulent and discouraging the claimant to take the claim further, it can also help to enhance service levels as it can speed up the handling of genuine claims whilst at the same time tackling those where there may be evidence of fraud."

And if the number of fraudulent claims decreases, the cost on car insurance premiums could soon follow.