Fraud pushing up the cost of motor insurance

The cost of motor insurance is rising because of fraud, which includes fake accidents, says a report by the Transport Committee of the House of Commons and their recommendation is a policing unit, against fake accidents, be funded by the insurance industry crack down on insurance claims that are false and an urging has gone out to government to make the driving test more difficult to help lower the amount of younger motorist injuries

As of year end October 2010 premiums quoted to motorists had risen nearly 30% or about £40 a year for comprehensive coverage said evidence supplied to the committee by the Automobile Association (AA).

It is clear, says committee chairman Lousie Ellman that staged accidents are increasing and those involved are lucky there have been no loss of life as a result that continued luck could end unless the insurance providers react in a quick manner to target this fraud, adding that the government is committed to making the drivers test more difficult to help with this situation at hand.