Fraudulent car insurance claims 'are not worth the risk'

Making a fraudulent car insurance claim is not worth the risk, according to Lloyds Banking Group.

The lender has its own specialist team dedicated to investigating potentially fraudulent insurance claims, with those found making false claims likely to face severe repercussions.

Lloyds Banking Group Manager of Financial Crime Dave Berry explained that the increase in insurance fraud during the downturn is not surprising.

He added: "Our message to anyone considering making a fraudulent claim is that it really isn't worth the risk.

"Anyone found guilty of committing insurance fraud will have their claim invalidated, and is unlikely to find any company willing to insure them in the future. They may also get a criminal record."

His comments follow the publication of research by the AA, which indicated that car insurance fraud is contributing to the fastest rate of premium increases for over a decade.

The findings indicate that car insurance premiums increased by more than 11% in the three months to June 30th.

Posted by Ruth Bradshaw