19 December 2006  ABI: Car insurance fraudsters up premium prices
Actions by groups of car insurance fraudsters are causing the cost of premiums to rise by five per cent for honest motorists, it has been claimed.

The Association of British Insurers (ABI) reports that criminals in the UK are deliberately causing potentially dangerous shunting accidents on the road, while looking to claim up to £30,000 from insurance companies for damage and injuries.

Malcolm Tarling, spokesperson for the ABI, said: "Fraud in all its various forms cost the average customer five per cent of their annual premiums.

"This means that there is a financial cost and a social cost as well - which is the cost of the accident in human terms."

He added that these actions from criminal gangs cost the car insurance industry over £200 million annually, with the recently established Insurance Fraud Bureau aiming to target this problem.

Earlier this year, car insurance firm Liverpool Victoria announced that among other anti-fraud measures its new system would involve checks using the Motor Insurance Database and the Motor Insurance Anti-Fraud and Theft Register.

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