Report highlights the growing costs associated with auto insurance fraud
Auto insurance fraud is beginning to weigh on consumers in the United Kingdom. According to the Automobile Association, Ireland is feeling a significant degree of financial pressure caused by fraud. A recent report from the organization shows that, on average, drivers are paying approximately $50 more a year on their coverage, largely due to the fact that insurers are attempting to recover from the financial losses they experience as a result of fraud.
Anti-fraud system has not yet been launched in Ireland
The Automobile Association also notes that Ireland is exposed to certain risks because a system to prevent fraud in the United Kingdom has not yet been launched in the country. Notably, the anti-fraud system is seen as ineffective, with many of those caught for committing auto insurance fraud having been discovered because of their poor choices. The anti-fraud system is still in early stages of development in Ireland, but does provide some service in the ongoing fight against auto insurance fraud.
Fraud continues to be a problem for insurance companies in Ireland
Insurance fraud is a costly problem for insurers of all kinds. Fraud often leads to significant financial losses, which force insurers to raise premiums. For honest consumers, fraud also represents an expensive problem, because higher premiums mean a greater degree of financial strain. In order to better combat fraud and mitigate the financial losses it is associated with, the Automobile Association has urged Insurance Ireland to hasten the development of the anti-fraud system that is needed. The system itself is called the Integrated Information Data Service.
Fighting fraud could help make auto insurance coverage less costly for drivers in Ireland
Combating auto insurance fraud is often a complicated process. Currently, there are no perfect solutions to the fraud problem, but insurers have become better at detecting fraud and dealing with those submitting fraudulent claims. Reducing instances of auto insurance fraud may have an impact on insurance premiums, making coverage more affordable for honest drivers.