Crash For Cash – Its Affect On Insurance Companies
Crash for cash is the name given to the type of fraud when criminals deliberately cause a road collision to claim compensation. Did you know that an estimated 170,000 car insurance claims in 15 months are suspected to be linked to crash for cash gangs? Insurers said that the fraud cost meant premiums increased for all motorists.
‘Crash For Cash’ - It's Affect On Insurance
Crash for cash is the name given to a fraud when criminals deliberately cause a road collision to claim compensation. Did you know that an estimated 170,000 car insurance claims in 15 months are suspected to be linked to crash for cash gangs? Insurers said that the fraud cost meant premiums increased for all motorists.
‘Crash for Cash’ scams range from paper-based fabrications to physical collisions often involving innocent road users, in order to profit from fraudulent claims. The scam has caused countless injuries and in some cases fatalities.
The most common accidents are caused when fraudsters stam their breaks at busy junctions and roundabouts in the hope that the driver behind will not have time to stop. They also tend to crash into innocent drivers who have been encouraged to pull out of a side road or to creep out of a junction for a better view.
It has been revealed that Birmingham has the highest prevalence of this type of car insurance fraud. Manchester was a close second, with London in third place and Luton in fourth. Ben Fletcher, director at the IFB (Insurance Fraud Bureau) said,” Crash for cash fraudsters…increase motor insurance costs for all of us.”
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How Can ‘Crash for Cash’ Scams Affect Insurance Companies?
After they have caused an accident, criminals will claim compensation. This is usually with the help of fake witnesses and other parties that may have been involved in the scam, for injuries, vehicle damage, a replacement hire vehicle, loss of earnings and other costs. The consequences of these accidents include serious injury or even death.
There is also the trauma of dealing with the consequences of an accident which even though it wasn’t, will look like the fault of the driver. It will also impact claims experience, leading to a consequent rise in insurance premiums and a negative effect on no-claims bonuses.
How To Avoid ‘Crash for Cash’ Scams
Keeping A Good Distance
It is always important to keep a good distance from vehicles in front of you. According to the DVSA (Driver and Vehicle Standards Agency), the time required to safely stop is:
– 2 seconds in dry conditions
– 4 seconds in wet conditions
– 20 seconds in snowy or icy conditions.
– Always drive safely and stick to the rules and regulations of the highway code.
– Look ahead and behind you to spot any potential hazards.
– Focus on vehicles and not just their lights, as fraudsters often disable their brake lights.
– Be cautious when pulling out of side roads especially if you are being encouraged by other drivers.
– If other drivers or their passengers are behaving suspiciously, or the condition of their vehicle is poor, stay calm and keep back.
Signs of a Crash for Cash Collision
– The driver of their passengers appears to be unphased after the collision.
– The driver or passengers appear to exaggerate injuries.
– Pre-written insurance information is handed over.
Other Car Insurance Scams
Fraudsters often target other motorists to make false claims and profit from policies. Some of the most common scams include:
- Crash For Cash – As mentioned above, In ’crash for cash’ scams, fraudsters deliberately crash into the vehicles of innocent motorists or submit false claims for accidents.
- Ghost Brokers – Ghost brokers are criminals who pose as insurance brokers to sell fake policies to unsuspecting motorists.
- Flash For Cash – In a ’flash for cash’ scenario criminals flash their headlights to let other drivers pass before crashing into them on purpose.
For more information on car insurance, click here to visit Brunel Insurance for People’s website. They are our dedicated personal lines sister company with extensive knowledge of the motor insurance market.
If you would like to discuss your insurance requirements, contact one of our specialists on 01934 643 400.