INSURANCE fraud has soared to an estimated £1.9billion a year – adding £44 to the average household’s annual premiums, it was claimed today.
Insurers think around £5.2million of fraudulent claims go undetected every day, 24 per cent more than two years ago, according to a poll by YouGov Financial Services.
But they are also detecting more fraud, with claims worth £730million rejected last year, 30 per cent up on 2007.
The Association of British Insurers said the number of people lying or withholding relevant information to get cheaper insurance had also risen.
Popular scams included withholding information about a speeding conviction or listing a parent as the main driver of a vehicle mostly used by a new driver.
But household policies saw the highest number of frauds. In one case, a man’s claim for a 42in LCD TV was rejected when he said he bought it before they actually came on the market.
