Driving premiums down: Fraud and the cost of motor insurance

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This is the fourth report we have published since 2010 on the cost of motor insurance. Although premiums are now falling, our reports have lifted the lid on a highly dysfunctional market in which the pursuit of profit by the different firms involved has led to higher prices for consumers and, in some cases, business practices which are not in the consumer interest. In addition, the business models of firms in this area have, inadvertently, encouraged criminal activity.

Concerted activity by a number of Government departments and agencies, working with all interested parties, is required to tackle the various problems which have been identified.

This report reviews Government plans to tackle fraudulent and exaggerated motor insurance claims, particularly for whiplash injuries.