The number of “crash for cash” car insurance scams uncovered by a major insurer increased by 51% annually last year.
Aviva said it had found around 820 staged accidents in 2013, leading to some 2,200 fraudulent personal injury claims.
They are pressing for tougher penalties for drivers and say drivers should be locked up rather than sentenced to community orders.
Aviva insure around one in 10 cars in the UK, they say that around half of the fake motor injury claims they discover are organized by gangs
Often, innocent motorists get caught up in crash for cash incidents. Usually, in road traffic accidents where one vehicle is hit from behind by another, it is the driver of the car behind who is deemed to be at fault. So, in a crash for cash incident, a car may brake suddenly in front of the innocent victim, leaving them with little chance but to run into the back of them.
There have also been many reports of fraudsters disconnecting their brake lights so that the car behind has little or no chance of stopping
Gangs tend to target innocent drivers who appear the most likely to be insured and the least likely to complain, such as those with well-maintained cars, older drivers and families with young children.
According to industry estimates, frauds of all types add around £50 to the cost of a typical insurance premium.
Tom Gardiner, head of claims fraud at Aviva, said: “The fast growth of induced accidents on our roads is cause for serious concern.
“Fraudsters are prepared to put the safety of innocent motorists and their families and passengers at risk for their own personal gain.”
He continued: “We believe that convictions for motor injury fraud resulting from induced accidents should result in more custodial sentences that recognise the unique physical harm that this form of insurance fraud poses to motorists, as well as the wider social costs.”
Aviva said that as well as maintaining a safe distance behind the driver in front, motorists should be particularly cautious if they notice that the brake lights on the car in front are not working.
If someone suspects they have been the victim of a crash for cash scam, they should call the police while they are still at the scene and ask them to attend, the insurer said
If you are looking to insure your courier vehicle then call Insure Courier on 01270 506988. We are always happy to help!
Information sourced from http://money.uk.msn.com/insurance/crash-for-cash-scams-soar-by-51percent-2« Back to all news