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Our insurance company is asking for payment before they will fight fraudulent claims - is this right?

My son has received nine fraudulent car insurance claims in the last month stating that he has been involved in accidents. It would seem that his details have been sold and are being used by fraudsters who are using multiple claims companies to place claims against him. His car insurance company has now sold/passed his policy to another company and this company is requesting £190 excess per claim before they even start to fight the fraudulent claims. He cannot afford this and also we only thought you paid an excess if you made a claim for damage to your car. He has obtained a police crime ref number for each fraudulent claim and supplied these to the insurer but they are still demanding money before they will act. They are now threatening to cancel his policy if he does not pay. What can he do?

Asked on 4 March 2019 by Lynn Holden

Answered by Tim Kelly
Categorically do not pay anything. Who is the insurer? Raise a complaint with them, then escalate it to the Financial Ombudsman Service. The excess is only payable for damage to your son's own vehicle, not for a claim from other parties. Some insurers have wordings where they do ask for an excess to be applicable in all cases. I believe these are not valid insurance contracts as they do not fulfil the road traffic act.
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