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Insurers and legal firms are increasingly worried about the scale of insurance fraud, in which dishonest motorists make an accident claim for exaggerated injuries following an often staged accident. This in turn affects honest motorists, whose insurance premiums are rising to cover fraudulent claims. Even more worrying, those motorists making genuine accident claim s, who are relying on compensation payments to cover genuine loss of earnings, are finding that their claims are taking longer and being scrutinised more. Insurance fraud costs UK motorists and insurance companies an estimated £1.9 billion every year, resulting in the fact that the average UK motor insurance premium is now over £1,000. This in itself represents a 19% increase on last year. Genuine customers are suffering at the hands of dishonest fraudsters who exaggerate their injuries when making an accident claim. A survey of accident claim solicitors demonstrated that over half of them believed they had witnessed an increase in exaggerated claims and invented injuries in the past decade. The epidemic of accident claim insurance fraud has been referred to as "indirect tax on the public, levied by dishonest people." The AA also found that fraudulent accident claims were a problem. Their data suggests the UK has a lower accident rate than much of Europe but that more accident claims are made here. The organisation believes each motorist could be paying as much as £66 every year extra on their insurance premium to fund fraudulent accident claims. This trend is such a worry for genuine motorists because of the unfair additional cost it adds to their premiums, but is also a genuine concern for those making honest accident claims. Those people who are seriously injured rely on money from compensation to pay their rent or mortgages for the period they are unable to work. Others with more serious injuries might need it to pay for ongoing care or alterations to a home to accommodate a new disability.
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