Fraudsters make millions in car insurance claims

Around £5m a week of fraudulent motor insurance claims were made last year, according to figures from the Association of British Insurers ABI.

It says 24,000 claims worth £260m were found to be dishonest last year, including one driver who pushed his vehicle off a cliff and then said it had been stolen.

Fraudulent claims led to honest motorists having to pay an extra £40 a year on average on their premiums. The ABI added that the number of dishonest motor claims had risen by 70% over the past three years.

In another case, a woman claimed her foot slipped off the brake of a Land Rover and the vehicle was damaged when it hit the front of a house. The insurer found the damage was caused deliberately after the woman had an argument with her partner.

The Insurance Fraud Bureau had been set up in 2006 to tackle "cash for crash" cases when accidents were deliberately staged for insurance purposes.In some cases drivers brake sharply in front of innocent motorists and then make large claims for the damage.

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2008-07-03 15:24:59 © Moneyextra.com