Study: Car insurance cheats cost honest drivers

Tue, 31 Aug 2010

For one day, every week of the year law-abiding UK drivers are footing the bill to pay for the uninsured and fraudulent drivers on the road, car insurance customers have been warned.

The Co-operative Insurance has claimed that this is costing drivers a massive £1.25bn every year.

Furthermore, the provider estimated that the average driver is estimated to pay around £50 on every policy which subsidises fraudulent claims, in addition to claims for accidents caused by uninsured drivers .

This, the firm observed, is equivalent to 52 days cover under an annual policy, or one day a week for every year.

Tim Franklin, chief operating officer at The Co-operative Financial Services, commented: "Millions of people are deliberately flouting the law by not insuring their cars at massive cost to honest road users and the wider insurance industry posing an unnecessary and unjustified risk."

Last week, moneysupermarket.com urged university students to think twice about taking their vehicle with them.

The price comparison website cautioned there is a significant difference in price between leaving a vehicle in a suburban property and parking it at city centre student accommodation .
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