Insurance fraud costs the UK consumer
As the UK recession continues unabated, with sporadic signs of improvement, we have seen a massive increase in the number of fraudulent insurance claims in areas such as home insurance and car insurance to name but a few. This is a common pattern as and when the UK economy goes into recession and is something which the insurance companies have attempted to control and reduce over the years but have ultimately failed.
The problem for UK consumers, i.e. those who carried out fraudulent claims and those who do not, is the fact that insurance companies simply add the cost of fraudulent claims to the premiums charged to every customer therefore spreading the load. No insurance company will take a hit from fraudulent insurance claims, whether proven or suspected, and while motor insurance is by far and away the most affected area it will continue to be so until fraudulent claims are clamped down upon and criminal prosecutions hit the headlines.
For those who claim for "borderline" insurance issues, these can offer financial assistance in the short term although ultimately, with increased premiums, they can be more costly in the longer term. If you are thinking of claiming on your insurance you need to consider what you're claiming for, the cost and ultimately how your premiums may be affected in the future.
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