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103069
Insurers checking claim history of applicants
September 10, 2010
By Mark Warner

Many insurance firms are now automatically checking the claim history of applicants before selling car insurance policies.

Recent research revealed that one in ten people are dishonest when they are applying for such cover, which is causing a substantial increase in prices.

According to figures from the AA, car insurance premiums have risen by almost a third during the last year, with the average fully-comprehensive policy now costing £704.

Insurers such as swiftcover.com now implement checks on prospective customers, after it transpired that ten per cent of motorists do not tell the truth on their applications.

Furthermore, data indicates that drivers who do not disclose past incidents with their insurance are more likely to make further claims in the future, many of them fraudulent.

Steve Gaywood, swiftcover.com's counter fraud and compliance manager, said: "It is not fair that safe, law-abiding drivers should pay higher premiums to subsidise people who lie about their previous claims to get cheaper insurance.

"We are determined to crack-down on people who try and buck the system as this will help us keep insurance costs lower for drivers who are open about their claims history and circumstances."

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