Fraudulent car insurance claims happen more often than the industry is aware, with a million UK drivers admitting they would consider "crashing for cash" because of recession-induced financial hardship.

Research by Money Supermarket also reveals that 340,000 motorists across the country have already successfully claimed on their car insurance after "staging" an accident.

Steve Sweeney, head of motor insurance at the comparison site, acknowledged that desperate times "do often call for desperate measures", but he emphasised that crashing for cash is illegal and endangers others.

"Our research reveals there are many more motorists causing this type of fraud and getting away with it than the industry is aware of," he confirmed.

Tina Shortle from swiftcover.com points out that a policyholder who instigates a fraudulent claim against Swiftcover will have their cover voided from the date of the claim.

Added to that, the individual would not be able to get another car insurance policy with Swiftcover – and could have difficulties acquiring cover elsewhere as a result of the requirements by most companies to disclose "whether you have previously been refused insurance or had a policy cancelled".

Statistics suggest that fraudulent motor insurance claims cost the industry over £4 million daily.

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