Fraudulent UK Car Insurance Applications on the Rise

fraudulent car insurance applications risingUK car insurance firms are now more aware than ever before to look out for fraudulent insurance applications. An increase over the previous year of almost 20% came in during the year 2014. More than 210,000 dishonest applications were filed. Claiming to live in a different postcode, intentionally leaving valuable information like previous claims off an application, and fronting are just a few of the most popular ways applicants are making an attempt to fraudulently obtain cover. Fronting is dishonestly claiming one person will be the primary driver when actually they will not be.

Another scam which is occurring in higher frequency is a practice known as ghost broking. This is an act in which fake car insurance policies are being sold by insurance advisors with no certification or registration. Drivers can easily get lured into a policy from a ghost broker. They often target students and advertise on websites, around pubs, and car parks.

Fraudulent applications are only part of the problem of rising car insurance costs this year. After a three year period of relief from increasing costs, car cover is once again becoming less affordable.

An alternative to traditional car cover could potentially be a relatively new insurance type. It is telematics car insurance and it is becoming more popular by the month.

Young drivers are especially drawn to it due to its ability to possibly save money and help them become better drivers. A small device is installed in the interior of the insured car which monitors driving habits as the driver is behind the wheel.

Drivers are provided discounts on future monthly car insurance premium costs when they demonstrate safe driving habits. Telematics cover can be applied for online.