Car insurance premiums pushed up by fradulent claims

Car insurance companies encourage claims.

Car insurance companies are paid by lawyers for the details of people involved in accidents says a report by the select committee on transport.

More claims are being made than ever before, and this is pushing up insurance premiums, though there is disagreement as to whether this is largely due to a rise in 'compensation culture', or a rise in fradulent claims.

The select committee argued for a dedicated police unit to deal with claims, paid for by the insurers, to deal with the issue of bogus claims. They also called for more transparency in the insurance claims process, including the exchange of details for cash.