Tuesday, 24 January 2012

Could Telematics Help Reduce Car Insurance Fraud?

Car crash stories are rife with people in minor accidents who claim serious injury - soft tissue or otherwise. 

Did you know that in the UK insurance fraud is estimated to cost car insurance firms around £2 billion a year? This is why many drivers are being faced with a increasing car insurance premiums – in fact an estimated £44 extra per year to cover the cost of fraud.*

Fortunately, with the latest telematics car insurance technology this kind of fraud may, in time, become a thing of the past.

Telematics systems can provide car insurance firms with a tool to better understand whether or not there was an accident, when it happened, where it occurred, as well as the severity of the crash. 

The application of telematics car insurance technology can result in significant savings for insurers through the identification of high-probability cases of “padding,” prompt resolution of fraudulent claims, and accurate determinations of what really occurred. 

As a result telematics could also save you, the innocent young driver a significant amount on your young drivers’ insurance premium.

Turning to a young driver black box insurance policy such as iKube will not only help to reduce your premium but could also help to reduce fraudulent claims and help to reduce the overall cost of car insurance for innocent motorists as a result.

*Source: http://www.abi.org.uk/Media/Releases/2011/07/No_hiding_place_for_cheats_as_drive_to_reduce_insurance_fraud_moves_up_a_gear.aspx