The battle motorhome insurance providers have in providing loyal customers with cheaper motorhome insurance was illustrated this week with the publishing of a report showing that bogus insurance claims are on the increase.
The report provided salutary reading for anyone thinking the war against fraudsters was being won and the increase of 5% on fraudulent claims added an average cost of £50 to a motor insurance policy. In fact the report covered the whole gamut of insurance products and revealed that over 2,500 bogus claims a week, worth in the region of £19 million was being exposed by those in the industry fighting against the tide of crime. That means in just one year 140,000 illegal claims will be discovered by experts in insurance fraud saving the industry something in the region of £1 billion. Of course honest customers are paying the wages of the crime fighters through their insurance premiums and the worrying thing is that no-one is really sure how much we are paying for fraud that is not exposed.
Although the report showed false claims on home insurance were numerically the greatest (71,000) it is motor insurance fraud that is the most costly. False whiplash claims remains the biggest problem and until the laws surrounding claims on this one single injury are radically changed then motorhome insurance policies will not get much cheaper. The report actually highlights a case where 30 passengers on a bus all put in claims for whiplash injuries after a staged collision! The report also mentions how members of one family finished up in jail after making over 100 claims on home insurance policies for storm damage.
Industry insiders are hoping the setting up of the Insurance Fraud Register will reap rewards for both customers and companies and both will agree improvements cannot come soon enough.