All Sections

Half of all whiplash claims are faked, insurers claim

Roughly 50 per cent of all whiplash claims that come as a result of car crashes are fraudulent, it has been reported. Insurance industry experts have warned MPs that the figure could even be as high as 60 per cent.

The rise in whiplash claims means insurers have added roughly £90 to your premium.
The rise in whiplash claims means insurers have added roughly £90 to your premium.

Car injury claims can be worth up to £3,000, so it’s no surprise legal firms and unscrupulous motorists are eager to get a slice of the action. Insurance companies are worried they are being hung out to dry by a “claims manufacturing industry” that encourages drivers to make claims even if they have suffered no injuries.

Giving testimony to the Commons transport select committee, David Powell, of the Lloyd’s insurance market association, said: “It’s so easy to fake, it’s so easy to exaggerate. There is a claims manufacturing industry which has developed over the last ten to 15 years. It has gone into overdrive.

“If you have a more stringent test, you will get more of the fraudulent claims challenged and more fraudsters put off.”

The UK has seen a rise in the number of cash for crash scammers, who stage accidents, deliberately cause accidents or invent ‘ghost’ accidents in order to place a claim.

If the insurance companies’ claims are correct, such fraudulent accidents could be costing the insurance industry £1 billion ever year. Insurance companies have calculated that the rise in the number of whiplash claims has added roughly £90 to the premium of an average car insurance policy.

Currently insurance companies often find it easier to settle cases rather than fight those that are suspected to be fraudulent.

Via: AOL Cars

Related articles

 

Insurance injury fraud: Your questions answered
Citroen C1 ‘black box’ tech provides free young driver insurance
Insurance companies – driving without insurance worse than drink driving

 

Comments