Drivers warned of cost of fraud

Date: 19/01/2007 14:27

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British motorists are being warned to be on their guard against car insurance fraud.

Large numbers of criminal gangs are staging deliberate accidents and then claiming against law-abiding owners on a string of car insurance policies that they have illegally taken out, claims the Association of British Insurers (ABI).

Such practices are thought to be on the rise and are thought to defraud motorists in the UK of at least £200 million each year.

The ABI is advising motorists to be especially wary of any suspicious activity they come across both during the accident itself and the claims process and to report any concerns they have to the police.

Malcolm Tarling, spokesperson for the ABI, said: "A good precaution is to take a camera with you so that in the unlikely event something happens you can take pictures at the scene."

Fraud is thought to add five per cent on to insurance premiums in Britain, according to the ABI.

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