Car insurance premiums always seem to be on the rise and insurers are usually quick to blame someone else for the increase. Repairers have often been in the firing line, usually unfairly, but in more recent years it has been the rising cost of personal injury claims normally given as a justification. However, a legal firm in the UK has strongly questioned this idea and claims the car insurance fraud pandemic is a myth.

Thompsons Solicitors says total payouts are declining, the number of claims is declining, yet premiums are rising.  The legal firm also points out that statistics do not actually back up claims of rising expensive fraud.

Thompsons says that since 2010, the amount paid out by insurers for claims has fallen by 29% and that figures from the Association of British Insurers said that payouts hit £8.3billion in 2010 but dropped to £5.89billion in 2014. They also question the need for government action to make claims more difficult. Tom Jones, Head of Policy at Thompsons says, “Where is the evidence of a fraud pandemic?” He also believes insurers have, “Cynically exaggerated the problem to attack the rights of honest motorists”.

Thompsons want the insurance industry to be more transparent with their accounting figures to back up rising fraud claims. Tom Jones says, “Most of the car insurers are making record profits and seeing their share prices hit records highs. Meanwhile, premiums have increased 9.2% in the last year, and motorists are threatened with legal changes that will mean they will either see less compensation because they will have to pay for their lawyer from their damages, or they will have to take on insurers on their own if they are unfortunate enough to suffer a road accident.”