Sunday, May 25, 2025
  • PRESS RELEASE
  • ADVERTISE
  • CONTACT
Happy With Car
No Result
View All Result
  • HOME
  • AUTO NEWS
  • AUTOMATIIVE REVIEWS
  • NEW CARS
  • CAR MARKET
  • CAR BRANDS
  • TECHNOLOGY
  • INSURANCE
  • FINANCE
  • VIDEOS
Happy With Car
No Result
View All Result
Insurance fraud is rising: the honest ways to reduce your premium

Insurance fraud is rising: the honest ways to reduce your premium

by admin
February 11, 2025
in Insurance
0 0
0
Share on FacebookShare on Twitter


Allianz has reported a ten% enhance in insurance coverage fraud, with ghost brokers, ‘crash for money’ scams and faux theft claims among the many commonest tendencies.

The insurer says it uncovered greater than 33,000 insurance coverage fraud instances in 2024, price over £157m. That is the equal of 90 frauds a day.

Whereas some examples of fraud are intentionally legal, others stem from policyholders telling white lies or stretching the reality when making use of for canopy.

Learn on to search out out why fraud is on the rise, and for our recommendation on trustworthy methods to get the perfect deal in your insurance coverage. 

Bogus claims and dodgy scams

Allianz recognized quite a few tendencies involving policyholders and scammers being economical with the reality as a way to get cheaper cowl. 

The insurer detected a excessive variety of ‘ghost brokers’. These will not be actual insurance coverage brokers, however criminals who promote non-existent or invalid insurance policies to victims. 

It additionally reported drivers mendacity about accidents to assert on their automobile insurance coverage and moped riders or couriers faking accidents to make claims. That is sometimes called a ‘cash-for-crash’ rip-off.

One other frequent kind of fraud was the follow of recycling claims. That is the place one declare is declined, just for the claimant to try to declare once more in a barely totally different method.

Examples of insurance coverage fraud detected by Allianz embody:

  • Two males intentionally staged a collision and falsely said the harm was price round £60,000. They went on to submit bogus claims on their insurance coverage. Inconsistencies raised alarm bells and the pair – together with a 3rd man – had been discovered responsible of fraud after a trial. 
  • A claimant struggling whiplash accidents following a automobile accident later went on to assert for dental therapy price £4,300 after claiming his face hit the steering wheel. The case went to trial and he ultimately dropped the declare and agreed to pay prices.

Why is fraud on the rise?

Automobile and residential insurance coverage premiums have steadily risen since 2022, hitting file ranges final 12 months. Worth rises are actually lastly easing, however current analysis by The Inexperienced Insurer suggests some persons are mendacity in a bid to cut back the price of their cowl. 

A survey of greater than 1,000 drivers discovered 29% had taken to stretching the reality when making use of for insurance coverage. Of those, 63% both barely or considerably understated the variety of miles they drive every year. 

Ben Fletcher, director of fraud at Allianz UK, says: ‘The overwhelming majority of claims are real, and our focus as a enterprise is to make sure we settle these promptly, however the unhappy actuality is that some folks will go to monumental lengths to make fraudulent claims.

‘The rise within the quantity of fraud may be attributed to a number of elements. The continuing price of residing problem and monetary struggles persons are dealing with is driving some folks to commit insurance coverage fraud.’

  • Discover out extra: what’s taking place to automobile insurance coverage premiums?

What can occur in case you misinform your insurer?

At finest, mendacity to your insurer may see your declare rejected. At worst, your coverage could possibly be invalidated or – in critical instances – you may face fines, prosecution and a legal file. That is as a result of dishonesty, both when making use of for canopy or making a declare, counts as fraud. 

In consequence, you may probably have your title added to the Insurance coverage Fraud Register. That is an industry-wide database of recognized fraudsters, utilized by insurers when making underwriting choices and assessing claims. 

If you find yourself on the listing, you may battle with future insurance coverage and mortgage functions.

  • Discover out extra: finest house insurance coverage 2025

This text delivers free money-related content material, together with different details about Which? Group services. Unsubscribe everytime you need. Your information can be processed in accordance with our Privateness coverage

Trustworthy methods to cut back prices

Insurance coverage costs is perhaps excessive, however the dangers of mendacity are merely not price it. Right here, we define methods to maintain the price of your premium down with out being dishonest.

1. Store round

It is a cliche, however seeing what different offers are on the market earlier than renewing or shopping for a brand new coverage is likely one of the only methods to safe decrease premiums. 

Worth comparability websites comparable to Examine the Market, Confused.com, GoCompare and MoneySuperMarket help you view a number of automobile insurance coverage quotes at a look. 

Not all insurers are on comparability web sites, so you may have to get quotes straight from them. Direct Line and NFU Mutual are examples of this.

2. Purchase early

Renewing early may prevent lots of of kilos. 

With automobile insurance coverage, you may typically get a less expensive worth in case you purchase your cowl just a few weeks (moderately than just a few days) upfront of the coverage begin date.

Purchasing round early additionally permits you to totally analysis the market or negotiate your insurer’s worth to be sure to get the perfect deal.

  • Discover out extra: the worst time of day to purchase automobile insurance coverage

3. Select annual cowl

Whereas paying for insurance coverage in instalments could make the prices simpler to handle, the curiosity charged on the month-to-month funds considerably impacts the quantity you may pay general. 

If it is advisable unfold your funds, one various is to purchase cowl upfront with an interest-free bank card, and repay a twelfth of the steadiness every month.

  • Discover out extra: finest 0% bank cards

4. Do not routinely renew

By no means comply with the auto-renewal clause included in your insurance coverage settlement. Because of this as soon as your preliminary one-year contract lapses, you’ll be routinely enrolled for an additional 12 months on the worth the insurer quotes in your renewal.

As an alternative, use the perfect quotes you’ve got gathered to barter along with your insurer and take your new enterprise elsewhere if it would not enhance its provide.

5. Tweak the surplus

In the event you’re keen to pay the next extra, your insurer will provide a less expensive premium. Nevertheless, make certain to pick your extra fastidiously.

Setting the bar too excessive, particularly if it begins getting too near your claims restrict, would possibly make claiming in your insurance coverage both pointless or too costly.

6. Haggle for a greater worth

In the event you do not need to swap to a different insurer, you would possibly be capable to get the worth down by haggling. 

Contact your insurer to ask if it could be ready to cut back its quote to maintain your customized.

It is going to assist in case you’ve executed a bit of buying round first, so that you may give examples of what its rivals are providing. 

  • Discover out extra: tips on how to discover low cost house insurance coverage



Source link

Tags: fraudhonestinsurancepremiumreduceRisingWays

Related Posts

10 Of The Worst Car Scams To Avoid When Buying Or Selling A Vehicle
Insurance

10 Of The Worst Car Scams To Avoid When Buying Or Selling A Vehicle

May 25, 2025
Stakeholders Embark On Nationwide Third-Party Motor Insurance Awareness Campaign
Insurance

Stakeholders Embark On Nationwide Third-Party Motor Insurance Awareness Campaign

May 24, 2025
Hit-and-Run Injures Motorcyclist on John St near Hwy 101 in Salinas
Insurance

Hit-and-Run Injures Motorcyclist on John St near Hwy 101 in Salinas

May 25, 2025
Prevent the Payout: Why Spring Maintenance Is a Financial Decision – Finance Monthly
Insurance

Prevent the Payout: Why Spring Maintenance Is a Financial Decision – Finance Monthly

May 24, 2025
Ex-Man Utd star Brandon Williams walks free from court after horror 99mph car crash
Insurance

Ex-Man Utd star Brandon Williams walks free from court after horror 99mph car crash

May 23, 2025
What a Personal Injury Lawyer Really Does for You
Insurance

What a Personal Injury Lawyer Really Does for You

May 23, 2025
Load More
Next Post
The Mercedes-AMG CLE53 Is Still Sporty Sans Roof: First Drive Review

The Mercedes-AMG CLE53 Is Still Sporty Sans Roof: First Drive Review

BiUP.ai onboards Rakesh Srivastava as advisor to drive AI Innovation in customer experience, ET Auto

BiUP.ai onboards Rakesh Srivastava as advisor to drive AI Innovation in customer experience, ET Auto

Categories

  • Auto News (3,341)
  • Automative Reviews (1,879)
  • Car Brands (2,005)
  • Insurance (3,340)
  • Market (1,578)
  • New Cars (2,085)
  • Technology (1,963)
  • Videos (2,082)
Happy With Car

Find the latest automotive news. Read car news from the auto industry including auto shows, latest vehicles, future cars and more.

Categories

  • Auto News
  • Automative Reviews
  • Car Brands
  • Insurance
  • Market
  • New Cars
  • Technology
  • Videos

Recent News

  • 4-Wheel Steering -You Won’t Believe How Tightly the New 2021 Mercedes-Benz S-Class Can Turn! #Shorts
  • No One Knew This 36-Year Old Concept Would Become The Most Popular Car In America
  • Charges 80% in 6 Minutes, Reducing Lithium Dependency, ET Auto
  • Home
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact

Copyright © 2020 Happy With Car

No Result
View All Result
  • HOME
  • AUTO NEWS
  • AUTOMATIIVE REVIEWS
  • NEW CARS
  • CAR MARKET
  • CAR BRANDS
  • TECHNOLOGY
  • INSURANCE
  • FINANCE
  • VIDEOS

Copyright © 2020 Happy With Car

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In