AA warns on fraudulent crash claims

Published: Tuesday 21st April 2015 by The News Editor

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Car insurance premiums could “spiral” again unless there is a crackdown on fraudulent claims, the AA has warned.

The culture of claiming for non-injury accidents is being encouraged by cold-calls from claims management firms, said AA Insurance managing director Janet Connor.

She went on: “Despite the premium falls over the past couple of years, the cost of cover remains higher in the UK than in most other European countries, thanks to the claims culture in the UK.

“While the number of crashes on Britain’s roads has fallen, the number of injury claims has risen.”

She went on: “My greatest fear is that if insurance fraud such as whiplash injury claims isn’t brought under control and quickly, we will see a repeat of the spiralling premiums of 2010 and 2011 when the cost of the average policy rose by over 40% in just 12 months.”

Based on a “shoparound” average figure, the latest insurance table from the AA showed that annual comprehensive cover in the first three months of this year (Q1) was £530.47 – a fall of 5.8% on the first three months of last year and down 1% on the last three months of 2014.

Third-party insurance averaged £731 in January-March this year – a fall of 5.9% on Q1 last year and 0.7% down on October-December.

Drivers aged 23-29 have experienced the biggest annual falls, with their average insurance 9.3% lower than in the first three months of last year.

In contrast, average premiums have risen 1% for those aged 60-69, and 4.9% for those aged 70 and over.

Ms Connor said: “We’re starting to see insurers quoting higher prices and I think that’s the beginning of a trend, but the market remains very competitive.”

Published: Tuesday 21st April 2015 by The News Editor

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