The APU, a body that investigates insurance claims on behalf of insurers, has identified a sharp increase in the misuse of company car insurance policies, resulting in escalating premiums for businesses.

The Unit reports that the most common misuse of company insurance cover is when drivers accept fault for accidents prematurely or falsely; they do so because they erroneously believe their personal no claims bonus will not be affected.

The Unit uses technology to reconstruct accidents, as well as forensic analysis. An increase in the use of ‘telematics’ – a black box that measures driving behaviour – has also helped to accurately identify fault in crashes.

In a recent APU case, six personal injury claims worth £32,000 were dismissed after a telematics device contradicted the driver’s account. The device was installed on the car of the driver who claimed fault.

“If drivers believe that they personally won’t be affected by corporate claims, they are sadly wrong – and they’ll be in for a big shock when they come to renew,” Neil Thomas, the APU’s director of investigative services, said.

“Some drivers simply don’t know that accepting liability on their corporate policy usually hits their own private insurance. Others, unfortunately, accept liability if there is a cash incentive to do so.”

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