Car insurers see big rise in fraud
As the economic crisis continues to unroll, one of the minor news items to emerge from this is the increasing problem of insurance fraud.
The trouble is, this also affects everybody because policy premiums are simply increased to pay for the costs of fraud.
We’ve already seen reported in the news that police are now reporting a record number of uninsured vehicles being taken off the road, with the current figure at around 150,000 a year and increasing.
On the other hand, a general escalation of insurance fraud, not least among car insurance claims.
It’s important to realise that car insurance is a necessity, and for protecting the driver and the driver’s interests. It’s not just the car that’s protected, it’s you.
While most accidents in the UK are not fatal, people are still killed on the UK’s roads every day. And even a seemingly minor injury, for example, whiplash, can develop into a much more serious medical condition.
Car insurance helps ensure repairs can be paid for so you’re not out of pocket. And most also have health and death protection built into the policy. So if you are injured, you can be compensated, which is especially important if this stops you working for a while. And death cover at least provides income protection for your dependents and family.
In the meantime, I’m currently running a car insurance policy with Nationwide, and I chose it because it gives me the features I need, with the protection I need, and all at a very good price compared to other companies. Even still, I’m very close to being eligible for the over-50 discounts with Saga which should allow me pretty much the same level of cover, at an even cheaper price.
And that’s the key insurance about insurance. People should look to ensure they have adequate protection first, instead of trying to save money getting the cheapest car insurance.
After all, where’s the point of saving a few pounds, if in the event of a claim, it can cost you a lot more in expenses, lost time, and lost income, by having a cheap but limited policy, or even no car insurance policy at all?
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