Caravan Insurance

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Written by by James Herbert, 21/07/10

Caravan insurance policyholders are being warned that fraudulent claims are driving up the cost of car insurance premiums.

According to the latest AA British Insurance Premium Index, caravan insurance policyholders could have been struck with an 11 per cent increase in premiums in the quarter ending June 30th.

Drivers dependent on a car to tow their caravan around could be paying in excess of £700 for an annual comprehensive car policy, up 11.5 per cent in three months, while the largest increase previous to this was just six months ago.

AA president Edmund King commented that although crime levels may be falling according to government figures, modern crimes such as fraud, which includes providing false information or claiming for non-existent personal injuries, are not being picked up on.

Mr King pointed out that price comparison websites offer would-be fraudsters the ideal opportunity to manipulate information they give to receive a lower premium.

"Insurers are increasingly charging higher prices to these people to cover the increased fraud risk," he explained.

Figures released last week by accountancy firm BDO show around half (49 per cent) of all fraud occurs in the insurance and finance sectors, but the BDO head of fraud services unit Simon Bevan said cannot be attributed to the financial downturn.

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