"In 2014 false motor insurance claims were up by nearly 20% compared with the previous year. The staggering finding from the Association of British Insurers adds up to around 212,000 bogus claims in one year."

One of the most frequent lies is 'forgetting' to admit previous claims or convictions whilst completing the insurance application form, as well as providing a fake address or postcode in order to enter the bracket of a lower risk area.

A technique known as ‘fronting’ is also used by parents in order to lower insurance prices. By falsely stating themselves as the main driver, they hope to get a better deal.

The rise in false motor insurance applications mirrors the recent rise in insurance prices, with cheaper deals becoming a thing of the past. According to the AA, between the months of April and June, insurance has gone up by a significant 5.2%.

Alongside the recent announcement in the budget which stated insurance premium tax will increase by 3%, the public has been warned that the spike in insurance costs may continue to rise.

Source: Express and Star

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