Fraud behind surge in car premiums

Insurance costs rising at fastest ever rate

Fraud is contributing to the fastest ever increases in car insurance premiums, with 5% of motorists under 35 having staged an accident, according to a new report.

In just three months, premiums rose on average by 11.5% and, for drivers under the age of 30, by 13.4% to £1,128, says moneysupermarket.com.

The comparison website’s research also found that 15% of motorists under 35 would consider staging a motor accident to claim on their insurance, while one in 20 younger drivers admitted to having already successfully done so.

Simon Douglas at the AA added that price comparison websites had been partly responsible for the increase in fraud.

"I have little doubt that the growth of price comparison sites has also encouraged fraud, although most people wouldn't see it as such. It is much easier to manipulate information on a computer screen to find the cheapest price - for example, by changing the facts about past driving experience, than attempting to do so in a conversation with insurance sales staff,” he said.

“The AA has been tracking the quarterly movement of average car insurance premiums across the industry for 16 years and premiums are now rising at their fastest ever rate. The price of a typical comprehensive car insurance premium, currently about £704, rose by an unprecedented 30.9% over the past year."