Aviva warns of surge in motor insurance application fraud

Aviva has detected a 16% increase in the level of motor insurance policy fraud through October this year, compared to the same period last year.

In its latest report, the insurer said it blocked more than 23,300 fraudulent or suspect motor insurance applications through October, compared with only 20,000 during the same period last year.

Other key findings include the following:

• 33% of motorists changed at least one material detail on their motor insurance application to save money;
• 88% deemed insurance fraud unacceptable, while 87% said it pushes up insurance costs;
• 17% admitted to insuring a car in their name even if someone else, such as their child, is the main driver; and
• 27% said they will consider lying on an insurance application to save money.

Iain Hamilton, head of motor underwriting at Aviva, said the Aviva team is committed to minimising the impact of fraud on motor insurance premiums. However, the increase in application fraud shows that insurers must not be complacent.

Therefore, Hamilton emphasised the significance of educating motorists about various forms of application fraud to help them become aware of ghost brokers offering cheap but worthless insurance while ensuring that customers fill out their insurance applications accurately so they have the right cover for their needs.

“If motorists are in any doubt about their insurance, they should speak with their insurer or broker to confirm they are adequately covered,” Hamilton said. “When it comes to applying for insurance, honesty really is the best policy. Motorists should avoid the temptation to change their details in an attempt to save a few pounds, as the penalties for policy fraud can be costly and add pressure to motor insurance premiums for all motorists.”