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New research reveals an increase in the number of fraudulent personal injury claims made as a result of car accidents, pushing up car insurance premiums for all motorists.
Car insurer LV= says over half of all solicitors in the UK have seen a dramatic increase in the number of people attempting to claim compensation on car insurance from exaggerated or invented injuries.
The most common personal injury claims against driver’s car insurance included whiplash, post-traumatic stress and ‘strained’ muscles. Interestingly, four in ten reported a surge in spurious cases since the recession began.
"Insurance fraud is not a faceless crime; it is an indirect tax on the public, levied by dishonest people and is an unacceptable feature of today's society that needs to be addressed,” said Asim Butt, a partner from Keoghs LLP, a law firm specialising in the investigation and handling of suspected fraudulent personal injury claims on behalf of insurance companies.
The vast majority of solicitors (89%) feel that the ‘blame culture' associated with personal injury claims has been exacerbated by the introduction of the ‘no win no fee’ arrangement, also known as the ‘Conditional Fee Agreements’ system.
"Drivers who invent or exaggerate their injuries to make a claim not only break the law but also push up the cost of car insurance premiums for all motorists,” said Martin Milliner, LV= technical claims director.
What can you do to reduce car insurance premiums?
Shopping around is still the number one way of saving money. But there are other tried and tested ways to reduce premuims:
- Check the insurance rating on your car before you buy it. So many of us forget to do this and yet it makes a huge difference!
- Many insurers expect you to do an average yearly mileage of around 12,000 miles. If you drive less than this, tell them - you might well get a reduction and you can also feel good about your carbon emissions!
- Park off the road if you can. Parking in a secure location – ideally a locked garage or at least in a secure designated off-road parking spot - will almost certainly reduce your premiums.
- Most of the big insurance companies offer all forms of insurance such as home, life etc. You may receive a discount for buying multiple forms of insurance with the same company but this will prevent you from shopping around, so be careful.
- Avoid high interest rates - Interest charges are often very high if you pay your premium in monthly installments. It is usually considerably cheaper to pay your premium in one lump sum.
- Buy online as premiums are often about 10% cheaper when you buy on the internet.
