Car Insurance frauds act as a catalyst for raising the premium rates. According to a recent survey, the car premiums have risen by about 30.9 % during the past few months. Thanks to the fraudsters. The premium cost for the young drivers rose much faster. The drivers below 30 became 11.9% more expensive to cover during the last three months.
They survey reflected that nearly 5% of the young drivers, mostly under 35 staged a fake accident to make falsified insurance claims. 15% drivers in the same age group say that would consider staging a fake accident to file their claims.
These deceitful claims have plucked off millions from the insurance companies and made the premium rates inflate. More and more drivers are opting for “cash for crash” to make someone else pay for their past losses or make claim of an injury that never happened.
These falsified claims are mainly encouraged by the rapidly spreading black market of the personal injury claim lawyers who are instigating people to file claims for minor or non-existent injuries which they might not even think of.
Moreover, the comparisons sites are also adding to these car insurance frauds to some extent. It’s easy to manipulate data on the computer to find yourself a car insurance quote that offer cheaper rate of coverage. But however the insurers are becoming wiser enough to recognize that cheap premiums undoubtedly lead to undue claims.