UK drivers could be risking a criminal record by lying about their car insurance, reveals new data.
According to Cifas – the UK’s largest fraud prevention service – fraudulent car insurance claims have increased by almost 50 per cent in one year.
In 2018, there was a 45 per cent rise in the number of fraudulent insurance claims made.
The report also found that younger drivers were responsible for the majority of the offences.
Cifas’ ‘Faces of Fraud’ campaign warns motorists of deception, exaggerations, and lies and was responsible for the statistics.
One of the most common types of vehicle insurance fraud is ‘fronting’.
There was a rise of around 18 per cent in the number of 21-30-year-olds committing ‘fronting’ which accounts for over half (58 per cent) of all fraud cases.
This is an offence when a lower risk and more experienced motorist claims to be the main driver of a vehicle when in fact it is a younger or higher risk person. The reason for this is to cut overall premium costs.
Cifas has warned motorists that could be trying to cheat the car insurance system that it could result in some serious punishments.
Insurers could refuse to pay out on your claims and it could invalidate your cover. What’s more, it could make your chances of getting car insurance in the future harder and even see you prosecuted for fraud and risk a jail sentence.
Mike Haley, chief executive officer of Cifas, said: “False insurance claim fraud and fronting insurance policies fraud are often seen as an easy way to make a bit of money without hurting anyone.
“Yet the idea that fraud is a victimless crime is completely false.
“First, false insurance claims and fronting insurance policies are illegal.
“They can impact your life and career, making it near-impossible to buy insurance in the future and can even lead to a criminal record.
“Second, committing fraud hurts everyone. Insurers have to spend longer reviewing insurance claims and policy requests, premiums go up, and everyone loses out.
“While the overall downturn in fronting insurance policies is a positive sign, the fact that young people are increasingly more likely to commit that type of fraud highlights the need for continuing education.
“More needs to be done to raise awareness about the harm of fraud and financial crime.”
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