Honest customers and insurance companies are losing out on more than £4 million every day thanks to fraudulent insurance claims, according to a new report.
The Association of British Insurers (ABI) calculated that the annual cost of insurance fraud is up to almost £1.6 billion.
The ABI findings reveal that one in ten Britons have admitted to cheating on their insurance, thus helping to push up the costs of policies among the remaining nine out of ten.
Figures reveal that around £40 is added to the average premium paid every year by policyholders, as a result of insurance cheats.
"Honest customers should not have to pay for the cheats. Insurers are committed to reducing the fraud problem. We are devoting greater resources to weeding out the cheats and working together to detect and combat fraud," said Nick Starling, the ABI director of general insurance and health.
He added: "These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves."
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