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Top 10 Locations that are Favored by Bogus Car insurance Claimants
Fraudsters who make false claims on their car insurance schemes have now become a huge issue because they are now hitting the rural areas as well. These schematic people who cause fake car accidents in order to make an insurance claim are not only an irritating actuality to car insurance providers, but they are also endangering the lives of other motorists.
In order to pull through their plan, the most common tactic that they use is to make unnecessary stops at busy round-abouts or slip roads. Hence, other motorists who are quietly making their way are being forced to crash into these schematic motorists.
Once the accident has been caused, these car insurance policy holders will then make bogus claims using fictitious information.
One online car insurance company has made an analysis to this recurring and progressing problem. And according to their research, they have now come up with the top 10 most preferred locations in theUnited Kingdomto carry out their fraudulent scams.
These are the top 10 car crash hot spots:
- North Orbital RdatLye Ln
- A406 Eastbound Junction nearAbbey Rd
- A5 Dunstable Rd Junction near B4540 Lynch Hill
- A40 Intersection or more popularly known as Hanger Ln Gyatory
- OldhamBypass &Manchester Rd
- BoltonM61 Junction Four
- Chester Rd,Birminghamnear the junctionHobs Hole Ln
- Woolston Grange Ave,Warrington
- A10 / A121 Roundabout
- A4177 Honiley Rdgoing towardsWarwick
The Head of Counter Fraud Operations at the car insurance company that held the analysis, Paul Hubbard, has mentioned that, “Fraudulent claims really do pose a huge risk to the public’s safety.”
“Apart from adding to car insurance costs, it is these fraudulent claimants that delay the pay-out on authentic claims because accidents need to undergo additional investigations.”
When further asked, he also said that “Our own investigation procedure lets us pinpoint the areas of concern and these top 10 rural areas are only a small; percentage of the data that represents the whole insurance industry.”
One main issue with false claims is that they do not only affect the car insurance company. They also affect honest motorists whose car insurance costs are going up because of these false claims.
According to the Insurance Fraud Bureau, they have estimated insurance companies to be paying out fraudulent car insurance claims at £ 350 million per year. If this is the case, honest customers have been shelling out £ 4 million per week to pay for these bogus claims.
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Parents ‘Front’ to Save Money on their Offspring’s Car Insurance
The soaring car insurance premiums have forced parents to ‘front’ and break the law by falsely declaring that they drive their cars more than their offspring’s. This practice is often used by parents who want to help their sons or daughters save on their car insurance rates. Since car insurance rates are normally high for new drivers and students, the increases have affected everyone and are forcing people to go against the law.
The Financial Ombudsman Services who deals with complaints on financial services companies have announced that they number of ‘fronting’ cases have reached almost 50 within a single month. According to their spokesperson, “The largest portion of fronting cases that we have received concern people who have intentionally misled car insurers because of the eye-watering increases that have forced them into being ‘savvy’’.
The cost for a comprehensive car insurance coverage has risen to 40 %. This is according to the data gathered by AA Car Insurance. More so, the most affected motorists are the new drivers. Motorists aged 17-22 are paying an average of £2,400. This shows an increased percentage of 64 % per year.
Intentionally misleading car insurance providers is a grave offense. If caught doing so, financial and legal implications may occur. Also, the car insurance companies have the option of refusing to pay out in case of an accident. If a car insurance provider will refuse to pay out, the driver may be treated as an uninsured motorist and this will gradually lead to more grave and serious complications.
On another note, a recent market analyst report has come out saying that car insurance companies could do more to make policy-holders more aware of the pertinent risks.
Meanwhile, car insurance companies are doing their ‘best’ to handle the issue of unreasonable car insurance costs that have plagued young drivers. This is in accordance with their ‘black box’ policies. These policies rely on the installation of the black box into a driver’s car. It uses a satellite technology that is capable of monitoring driving behavior like acceleration and braking. Hence, the better the vehicle is driven: The lower the cost of car insurance.
There are already a growing number of car insurance companies that offer a black box installation. Some of these companies are Co-op, InsureTheBox and Young Marmalade. Also, according to their records, there have been an estimated 90 % of motorists that have received cash-backs after proving that they are not dangerous drivers. Hence, instead of parents fronting for their grown-up children, installing a black box can prove to be more effective than breaking the law.
Avoiding an Insurance Claim this Winter Season
Once the snowflakes start falling, winter is inevitable. However, as much as we may find a winter wonderland whimsical, this is the season to be careful. According to one of the largest insurance and financial organizations inCanada, snow-laden roads are a huge contributor that results in tragic accidents. Hence, if there is a soar in accidents, there will also be a huge increase in car insurance claims.
TD Insurance Company is one of the largest insurance and financial companies inCanada. And, according to their data, an increase in car insurance claims during the snowy season is not unusual.
While the best probable solution in avoiding car accidents during this season is to stop driving altogether, it isn’t quite an option. Many people brave the roads everyday to go to their jobs and they have started to get creative in their driving. When the windows start steaming up, they use their coats to clear up the windshield. However, are these creative driving tactics the best strategy?
The Vice-President and Chief Underwriter of TD Insurance, Henry Blumenthal, have given out some tips to motorists who constantly brave the chilling weather. With the awareness of how to weather the most piercing of winter storms, motorists can avoid making unwanted insurance claims.
According to Henry Blumenthal, there are three basic steps to follow. These are to prepare an emergency driving kit, purchasing winter tyres and to always be prepared.
Prepare an Emergency Kit – Since the winter season can bring down tons of snow, an emergency kit should be assembled. Part of this kit must be a snow shovel, snow brush, booster cables and window scraper. Also, candles, matches, blanket and an extra coat must be prepared. In addition to this, kitty litter is also a good alternative if ever there is a scarcity of road salt.
Winter Tyres are Vital – winter tyres may be expensive but high quality and well inflated winter tyres are capable of giving your car a better traction against snow-laden roads. Also, winter tyres can also help you be more fuel efficient. It is important to check the tyre pressure frequently especially before going for a drive.
Bracing up against the Season – Road conditions must always be checked and verified. This way when you are about to head out on the highway you would know which routes to avoid and which roads to utilize. With these three basic steps, you are ready for the worst the winter season has to offer. Not to mention saving on your insurance premium because of an unanticipated accident claim.