Fraud in Auto Insurance

Monday, October 24th, 2016 - FINANCE

Spanish car insurers have detected an increase in attempts of fraud over the past year. There have been a total of 76.569, which culminate with success, had entailed a cost of EUR 296 million, 7.2% more than in the previous year.

According to the employer insurance Unespa, scam attempts to increase in automobile insurance is due to economic difficulties, which lead some customers to seek liquidity through simulated casualties or take advantage of a statement of claim to include damage previously. This type of claims has been 78% of fraud attempts, while the remaining 20% has been related to the compensation liability and policies of different.

In fact, in 2009, expected the number to grow significantly because the car insurance sector always undergoes cyclical changes in the economy with some delay.

Auto insurance is one of the most conducive to this kind of practice in times of crisis. The field of accidents is also one of the hardest, that covers, in many cases, self-employed workers, who are being especially punished by economic difficulties.

In this sense, fruits Gonzalez, the President of the annual Assembly of Unespa, says that with the crisis individuals have lost traditional references saving and thus, their pattern of priorities has been modified. “The Spanish are not only concerned by the safety of their money, but also by what to do with it”, according to a survey conducted by Unespa on confidence that deserve them different assets.

To deal with the situation, the auto insurance companies have reactivated its control systems on the requests made by the insured. As a result, authorities have managed to avoid the payment of 205 million euros, although they had to deal with 91 million euros for failing to evidence of the existence of the deception.

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