Most UK consumers do not think they should pay higher premiums to cover the money paid out by insurers on fraudulent claims.

A recent Omnibus survey found 86% of people did not think they should help cover the insurance industry's fraud losses. The survey discovered consumers were not aware that funds of many people pay the claims of a few.

The majority of insurance purchasers did not think they should pay increased premiums to cover flood risks (79%) or subsidence claims of others (85%).

Only 3% admitted they or someone they knew had inflated a travel claim. The reason given was that they expected the insurance company to try to cut the claim down.

Almost 10% said they or someone they knew had inflated a household or motor claim because they thought the insurance company would reduce it.

Garages are also expected to inflate repair claims following an accident, with 36% of people surveyed expecting the final value to be more than first thought. Only 8% said they knew someone who had claimed for an incident that had not really happened because they wanted to recoup some of their premium.