Driving Forward To Reduce Car Insurance Fraud

22/12/2009

Hastings Direct are changing the way they deal with fraud to help reduce car insurance premiums

Hastings Direct and all it's sister brands (Insure.co.uk & Likewise) have made an announcement that they are currently in the process of trialling new technology which will dramatically reduce the number of fraudulent policies being taken out. They say that they are aiming to have the new anti fraud system fully rolled out in the New Year.

 

Current estimates state that at present, fraudulent policies account for an extra £100 on all motor insurance premiums which are taken out. With a yearly total estimated at £1.9 billion, this is a massive amount which is currently being subsidised by the honest policy holder.

From an initial test performed over the last several months, it was discovered that, for example “15% of people had given inaccurate driving licence information, such as sending in old licences to get around speeding convictions” which all has an effect on the way the policies are assigned based on risk factors.

Chief Executive of the group, Edward Fitzmaurice said on the new system that “we feel strongly about the fact that honest drivers who have built up their no-claims bonuses, should not be forced to ‘bail out’ those who are intent on trying to defraud the system”.

Mr Fitzmaurice suggested that in the new year, once the system is up and running, he hopes to be able to reduce the cost of premiums following the savings it will make from identifying people who are trying to defraud the system.