London, UK - Recent reports indicate a sharp increase in car insurance fraud, contributing to the rising premiums for honest drivers across the UK. According to the Association of British Insurers (ABI), fraudulent claims have increased by 17% over the past year, costing insurers millions and driving up costs for all policyholders.
Shailesh Ramani, CEO of FreePriceCompare, stated, "Insurance fraud affects everyone, leading to higher premiums and a more cautious insurance market. It's essential for consumers to stay informed and compare car insurance policies to find the best rates amidst these challenges."
The Impact of Fraud on Car Insurance Premiums
1. Increased Claims Costs: Fraudulent claims lead to higher overall costs for insurers, which are then passed on to consumers through increased premiums.
2. Stricter Underwriting: Insurers tighten their underwriting criteria to mitigate fraud risks, potentially making it harder for some drivers to get affordable coverage.
3. Higher Excesses: Policies may include higher excesses to deter fraudulent claims, impacting honest drivers who need to make legitimate claims.
Tips for Lowering Your Premium
1. Use Comparison Tools: Regularly compare car insurance quotes to ensure you are not overpaying due to industry-wide fraud impacts.
2. Consider Telematics: Telematics or "black box" insurance policies can help reduce premiums by monitoring and rewarding safe driving behaviour.
3. Report Suspicious Activity: Report any suspicious claims or activities to your insurer to help combat fraud and reduce its impact on premiums.
About FreePriceCompare
FreePriceCompare is dedicated to helping consumers navigate the complex insurance market, providing tools and information to compare policies and save money.
Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
Media Contact
Company Name: Free Price Compare (Car Insurance)
Contact Person: Media Spokesperson
Email: Send Email
City: London
Country: United Kingdom
Website: https://freepricecompare.com/insurance/car-insurance/
