Surge in 'crash for cash' scams

by Autonet Insurance | Aug 23, 2010

Crash for cash scams, where drivers stage accidents to claim on the car insurance of other motorists, have reached a record high, figures have shown.

The Insurance Fraud Bureau (IFB) has estimated that about 30,000 accidents were staged last year, with each claim averaging around £17,000.

The accidents cost insurers about £350 million in 2009, adding £44 to the premium of every driver in the country.

According to IFB data, Birmingham has the UK's highest number of scam cases, where fraudsters claim thousands of pounds on innocent drivers' insurance, with the other five top places taken by Liverpool, Blackburn, Manchester and Leeds.

Parts of London are in the top 10 hot spots for the first time, with east London in sixth position and north London in ninth.

Fraudsters usually brake suddenly on a clear road or roundabout to make an innocent motorist drive into the back of their vehicle, then going on to claim for personal injury, damage to the car and recovery fees.

Sgt Mark Beales, from Greater Manchester Police, warned that criminals selectively target their victims.

He told the BBC: "What these fraudsters tend to pick on are people who are single mums or elderly people, people who are less likely to cause them any issues.

"They also target drivers of commercial vehicles, because drivers tend not to care as much if they're not driving their own vehicle."

© Press Association 2010

© Press Association 2010

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