Brits bump up home claims by £246m per year

AXA Personal Lines research shows exaggerated home insurance claims are costing every home around £13 a year on their home insurance premiums.

AXA said it has seen a rising trend of exaggerated claims, while research among brokers shows that 38% believe people are more likely to exaggerate a claim today than a year ago.

Research conducted by AXA among consumers suggests that around 8% of claimants have added an average of £2898 to the real cost of their claim, while 13% of brokers believed customers exaggerated claims, on average, by thousands of pounds.

The research showed that 36% of people would be likely or very likely to consider exaggerating a home claim if they made one, while 47% believe it is acceptable to lie when making a claim.

AXA Personal Lines home underwriting manager James Barclay said: “Exaggerated claims have always been an issue for insurers but over the last few years there has been a marked increase in numbers.

“Generally people see it as a victimless crime but ultimately, honest policyholders foot the bill as insurers have to pass on the cost to their customers. We would urge all brokers to help educate consumers that it’s just not worth trying to get away with it.”

Men are considerably more likely to exaggerate a claim than women, and the amount they exaggerate by is nearly twice that of women, the research revealed.