Vehicle devices in the UK are beginning to cut down bogus insurance claims.
Three people who recently tried to claim £54,000 in damage and personal injuries following a minor accident saw their claim rejected after a telematics device proved the claim was implausible.
Telematics devices record information on how, when and where a car is being driven, and note the speeds and driver’s braking habits.
The ‘black boxes’ were first installed some 10 years ago initially to let insurers know of how well young drivers perform. This in turn impacted on the cost of the premium. The boxes are about the size of a pack of playing cards and are fitted under the car’s bonnet in around one hour.
The accident in question concerned a flatbed lorry and a Vauxhall Astra. Although the Astra hit the back of the lorry at low speed, the lorry was not damaged and the front of the Astra showed minor damage.
But the three lorry passengers made a claim against the Astra’s insurers.
The claim was dismissed in court, but the three did not face charges as a result of the attempted fraud.
In light of the rising number of fraudulent claims, insurers are encouraging the installation of telematics boxes as well as video cameras on the dashboard.
Industry estimates suggest that 380 fraudulent claims are made to insurance companies daily, slapping around £50 on insurance costs for all drivers.
False claims of whiplash alone cost the motor industry at least £1bn each year, according to the Institute and Faculty of Actuaries.
Aviva, the UK’s largest insurer, said it uncovered more than £110m-worth of insurance fraud last year, with the bulk of bogus claims involving motor insurance.
It is currently investigating 5,500 suspicious injury claims linked to "known" fraud rings, a leap of 20% since 2012.
