2017-01-27

Office for National Statistics data that was released on 19th January 2017 has found that insurance fraud has fallen by 13%. What does that mean for your policy price and how else may this affect you? Let's find out...

Insurance Fraud is on the Decline

According to an Office for National Statistics (ONS) report on Crime in England and Wales for the year ending September 2016, insurance fraud fell by 13% following a period of increase. The ONS says this is largely due to a decrease in offenses reported by Cifas, however it is unclear if this reflects a true decrease.

A Pricey Crime That 'Doesn't Hurt Anyone'

On January 21st 2016, the Insurance Fraud Taskforce released its Final Report which maps out the UK's issues with insurance fraud and what can be done to tackle the nation's problem.

The report states that insurance fraud is costing the average policyholder up to £50 per year, and the country more than £3 billion. To tackle this, the insurance industry has increasingly recognised the importance of collaboration and sharing data and now spends in excess of £200 million per year tackling fraud.

How Will This Affect You?

If you need to make a claim, the only cost is to the insurance firm... or that's what many people think. But, as the above statistics have revealed, this couldn't be less true. False or inflated claims affect everyone.

It appears that, although on the decrease, insurance fraud is still a big problem in the UK. This is causing the average cost of a policy to go up and is leaving many people out of pocket.

If you're one of the many who have exaggerated when making a claim, then repercussions could be more serious. Not only will you also be effected by rising premiums, but if found out you could receive penalties such as licence points, a fine or even imprisonment.

What Can You do to Keep Your Policy Price Down?

Whether you're looking for trade insurance or office cover, there are a number of steps you can take to ensure you get the best deal possible.

Build a tailor-made policy - A bespoke policy will ensure your cover is designed with your needs in mind. You will be able to make sure you have the appropriate cover where needed and reduce or remove it where you do not. This may be able to save you some cash.

Increase your voluntary excess - It's always best to set your excess on a policy at a level that you can afford. However, the higher the figure you choose, the lower your annual policy fee will likely be. Why? Well, the higher the excess, the less likely you are to make a claim.

Compare policies online - Comparing quotes from multiple insurers can help find you the best price for the same or similar cover. This is free and quick to do, especially when you do so with us here at Business Compare. Search and compare business insurance here.