Recession will push up car insurance fraud, expert warns

Fri, 06 Feb 2009

Attempts at car insurance fraud could increase as the recession bites, according to one expert.

Mike Smith, commercial motor technical manger at Norwich Union, warned that the financial pressures people face in a downturn could mean they try and get one over on their car insurance firm .

"The pressure of the credit crunch brings out extremes in human behaviour and insurance is one area that's vulnerable to this," he said.

He gave the example of one person who arranged to have their vehicle stolen so they could claim on the insurance, however, they were found out and the company refused to pay.

People might also be tempted to exaggerate genuine car insurance claims from third parties, so those involved in an accident should take "discreet photographs" to record the damage, he added.

Recently, Moneysupermarket.com suggested that people looking to save money on their car insurance can do so by avoiding so-called green packages.

The company found that environmentally-friendly car insurance tends to be more expensive than standard packages.
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