My insurance premium has increased after a claim against me despite the fact I think it's fraudulent?

A third party car passenger alleged we collided with the car he was in and his solicitors have contacted my insurers seeking injury compensation. My annual premium increased from £510 to £1140 as a result of the outstanding claim. I have advised the police and my insurer that I have no knowledge of the alleged incident. There are no witnesses, no video evidence and the claim was made 18 months ago. My car has been inspected by an independent engineer arranged by my insurer, who could find no damage to my car.

Will my insurer eventually refund the 'increased' portion of my renewal premium? Do I have to wait three years before the claim is rejected? Do I have any rights for thew stress caused by this claim?

Asked on 28 January 2020 by jack gibson

Answered by Honest John

Yes, the insurer should refund the increased premiums if the claim is found to be a "vexatious" claim and fraudulent. The insurer should defend the case on the basis of "fundamental dishonesty". Once this is done, you should be refunded. You could raise a counterclaim for the increased premiums.

Tags: insurance fraudulent claims vexatious claims

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