Insurance fraud is always a big worry for insurers. It is especially a concern as the technology readily available to criminals is getting smarter.
‘Crash for cash’ scams can cost up to £336 million a year which inevitably puts up the premiums of those honest drivers. This is why it is always a high priority for insurers to help clamp down on fraudulent claims.
Insurers are now using new technology to help make insurance fraud a lot harder to get away with.
Telematics Insurance
One example of this is telematics insurance. This is when the insurer puts a black box in your vehicle which tracks for speed, acceleration, braking and even the time that you drive at.
This black box means that insurers can track a vehicles every move, helping to give a picture of what actually has happened. For example if someone claims the accident happened in one place, and the box shows that it was somewhere completely different at that time, then it is clear that it is not a real claim.
However there is a risk of fault with the boxes and it not recording data accurately. This means that they can sometimes be unreliable.
Dash Cam Insurance
Dash Cam insurance is a new alternative to telematics insurance. Some prefer it as it doesn’t give you any restrictions when driving, such as the curfews you get with some telematics policies. This is very important for example to those who work unusual patterns.
With dash cam insurance, all you need to do is have a camera fitted within your car. This is usually installed by the insurer as they will only let you use a specific brand and make. It records everything whenever you drive. This means that if you are unfortunate enough to have an accident, the footage will help tell who is at fault. This is important when processing the claim and leaves little room for unreliability, like telematics.
What’s your thoughts on insurance fraud? Would you get a dash cam to help you if you ever had a claim? Let us know in the comments below!