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Exaggerated home insurance claims pushing up premiums
Homeowners who exaggerate their home insurance claims are leading the cost of home insurance premiums to increase by around £13 a year per household, according to AXA.
Research by the insurer found that around eight per cent of claimants are adding around £2,898 to the real cost of their claim, totalling £246 million a year for firms.
Indeed, over a third (36 per cent) of people surveyed said they would be likely to consider bumping up their claim if they were to make one, while half the population think that telling a few lies is fine.
"Exaggerated claims have always been an issue for insurers but over the last few years there has been a marked increase," noted James Barclay, home underwriting manager at AXA.
"Generally people see it as a victimless crime but ultimately, honest policyholders foot the bill as insurers have to pass on the cost to their customers."
Meanwhile, research by Direct Line found that one in ten motorists have been involved in a crash with an uninsured driver.
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Research by the insurer found that around eight per cent of claimants are adding around £2,898 to the real cost of their claim, totalling £246 million a year for firms.
Indeed, over a third (36 per cent) of people surveyed said they would be likely to consider bumping up their claim if they were to make one, while half the population think that telling a few lies is fine.
"Exaggerated claims have always been an issue for insurers but over the last few years there has been a marked increase," noted James Barclay, home underwriting manager at AXA.
"Generally people see it as a victimless crime but ultimately, honest policyholders foot the bill as insurers have to pass on the cost to their customers."
Meanwhile, research by Direct Line found that one in ten motorists have been involved in a crash with an uninsured driver.
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Published: 19/04/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.