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Crash for cash scams cost honest drivers

Published on 29 May 2009 under category: legal

Fraudulent motor insurance claims are costing honest policyholders an extra £40 on their annual premiums, according to new data released by the Insurance Fraud Bureau (IFB).

According to the body, 'crash for cash' scams, which see drivers deliberately causing an accident so they can claim on their insurance, are becoming an increasingly large problem on a national scale.

During these induced accidents, fraudsters will typically drive into busy road junctions and perform an emergency stop, causing innocent motorists to crash into them.

"The criminal gangs targeting honest motorists are ruthless," said John Beadle, chairman of the IFB.

"Innocent lives are being put at risk and fraudulent insurance claims add approximately £40 to every premium paid by honest policy holders each year."

According to the research, Bradford in Yorkshire is the worst place for crash for cash scammers, followed by Blackburn, Oldham and Liverpool.

The IFB is working with the police to halt the problem and claimed that organised crash for cash network sizes have reduced by 11 per cent over the last two years.

Dan Hyde of Cubism Law agrees "Crimes have an impact on the tax payer but 'crash for cash' scams further impact on the motorist as premiums rise to reflect the upsurge in claims. Effective policing should deter such fraudsters as a prosecution for dangerous driving or other appropriate offence should follow. The problem is proving the bad driving was deliberate and, by way of the claim, and attempted fraud. Unless the evidence of other motorists/bystanders is particularly strong the chances of securing a conviction for this element will be slim."

Earlier this week, the City of London Police warned that credit card and identity fraud are on the rise as a result of the recession.