It is becoming apparent than car insurance companies are secretly blacklisting certain postcodes which is why honest motorists are facing soaring premiums as a 'fraud epidemic' sweeps the country.
Motorists have seen a record 40% hike in premiums over the past year, with the average annual comprehensive policy forecast to break the £1,000 barrier within the next 12 months. Car insurance companies say a major reason for this increase is fraudulent claims that are estimated to cost £2.7bn a year, adding £44 to the annual premium of honest motorists.
Common frauds include staged accidents where more than often gangs are involved, bogus injury claims - whiplash being the most common and fronting, where parents cut costs by claiming they are the main driver on an insurance policy for their child's car.
The top ten areas for suspicious claims are parts of Birmingham, Liverpool, Bradford, East London, Manchester, North London, Bolton, Blackburn, Southall and Oldham. These towns and cities account for more than four in ten suspicious claims.
Birmingham is the worst 'blackspot' and generates almost one in ten of the suspicious claims. This compares with fewer than one in a hundred in West London. This analysis, which is given to car insurers, also shows huge variations within individual towns and cities. For example, the postcode B8 - east of Digbeth in Birmingham - generated almost 13% of suspicious claims in the city. Meanwhile, B15 Edgbaston in Birmingham accounted for just over 1 %.
Some areas that have seen the biggest growth in suspicious claims this year include Newcastle, Peterborough, Preston and Chester which are all now rated as 'fraud blackspots'. In fact the fraud epidemic across the UK is only growing and shows that fraud is no longer restricted to the heavily built-up areas in towns and cities.
The result of all of is that even law-abiding drivers without a claim to their name who live in these areas can struggle to find affordable insurance. Stories of drivers having their car insurance premiums
doubled or even being refused a car insurance quote are now becoming much more common place simply because the area they live within is ‘unacceptable’.
If you are looking to insure your car, try getting in touch with Compare Insurers to compare car insurance quotes
online from top insurance providers and see if you can beat the postcode black list and find the cheapest motor insurance to suit your individual requirements.
Posted: 18/01/2012 13:06:07
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