Every honest driver forks out £50 a year to cover the cost of cheats driving without any insurance or lying to bump up claims.
This adds up to a massive £1.25 billion a year to pay for uninsured drivers and fraud for the UK’s 4.8 million motorists who pay out for car insurance.
Insurers levy the £50 as part of every driver’s annual premium and the money is put towards a reserve to pay for accidents involving uninsured drivers so the victims can receive a pay out.
Many of those who drive without insurance are already disqualified from driving because they are too young to drive or have had a conviction for other driving offences.
Although uninsured drivers are a big headache for insurers, so are the cheats who try to push up their claims by lying.
Typically, they try and pass off old damage and normal wear and tear as a genuine insurance claim to get insurers to pay for all their repairs.
Assessors and garages are wise to this as they see hundreds of damaged vehicles a year and can easily tell from experience what was damage was caused in an accident and what was wear-and-tear or already on the car.
Garages may often carry out extra repairs and maintenance – but at an extra cost to the owner, not as part of the insurance claim.
The other con is putting in a claim for expensive belongings stolen from their car that were not there at the time of a break-in – like laptops, mp3 players and mobile phones.
Again, assessors know most car thieves smash a window to grab what they can see and do not break in to a car on the off chance something valuable may be stashed in the glove box or boot.
Putting in a false claim like this could often be considered an insurance fraud that could invalidate the cover and lead to a criminal prosecution.
Many drivers consider overstating a claim as harmless, but the truth is every honest driver ends up paying more because of the lies.