Increasing fraud leads to rising car premiums


The AA BIPI has found fraud to be a cause of ever rising car insurance premiums which are currently rising quicker than ever before.

Between April and July of 2010 premiums increased by 11%, the biggest rise in BIPI 16 years of operation.

The average policy hit 704 pounds.

Edmund King, AA president, says that the British Crime Survey's results that show crime is falling ignores the increase of fraud by means of providing fake information or claiming for fake injuries.

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Car insurers also are a victim of fronting, another type of fraud.

Fronting is the act of a parent acting as the principal driver of their childs car in order to lower premiums.

Two out of five parents currently do this for their children, even though in the event of a claim the cost to the parent is usually a lot greater than the original insurance premium.


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