Car insurance rockets with increase in fraud
Fraud is causing car insurance premiums to rise at their fastest rate for years, it was revealed today.
Premiums rocketed by at least 11.5% in the period April-June 2010 — the biggest increase since the AA started tracking insurance trends 16 years ago.
Policies sold through price comparison sites rose even more — by 12.7% — while third party, fire and theft (TPFT) cover rose 17.1%, AA Insurance said. AA president Edmund King said: “It's now much easier to get an insurance quote online.
“For example, comparison sites can enable dishonest individuals to manipulate information to get a lower premium. Insurers are increasingly charging higher prices to these people to cover the increased fraud risk.”