Insurance fraud raises premiums in the UK by around £50 every year, and with ‘crash for cash’ schemes becoming more common, we’ve compiled a short guide to advise you of what to do should you become an innocent victim caught in the crossfire.
What Are ‘Crash for Cash’ Schemes?
‘Crash for cash’ car accident compensation claims are a form of insurance fraud that can manifest in any of the following ways:
• The fraudster pulls in front of another (innocent) car and then breaks sharply, providing little to no chance of stopping safely and causing the victim of the scam to rear-end them.
• The fraudster pulls off and breaks sharply at a junction, roundabout or pedestrian crossing causing the victim of the scam to rear-end them.
• The fraudster does not have working break lights and breaks sharply causing a collision.
• The fraudster deliberately drives into items or other vehicles.
• A ghost accident is staged where no crash occurs, however it is claimed it did.
Once the physical damage has been done, the scammers then make fraudulent insurance claims which they state will cover the cost of medical expenses and repairs or storage of the damaged vehicle.
What Effects Are ‘Crash for Cash’ Car Accident Claims Having?
Insurance fraud costs UK drivers millions of pounds each year. In fact, according to the Insurance Fraud Bureau (IFB), ‘crash for cash’ claims cost the UK £336 million last year alone. Some unlucky motorists are getting caught up in the action and even those of us not involved end up paying for the scam in some way.
Much is being done to tackle this issue. In December 2015, more than 80 people were criminally convicted after taking part in one of the largest ‘crash for cash’ car accident compensation claim scams in UK history. A Welsh garage had accumulated nearly £800,000 over four years by deliberately crashing vehicles in order to claim inflated damages. It was only when CCTV footage was inspected that the gang were caught out.
Have You Been a Victim of a ‘Crash for Cash’ Scheme?
A poll by the IFB has found 7 in 10 UK motorists are now concerned about being injured in a car accident that was deliberate, but if you feel you may already have become a victim, we can help.
Common signs of a car accident compensation claim con are:
• The other driver (who you’ve crashed into) is very calm and nonchalant.
• The other driver has their insurance details written out and on hand
• The other driver claims to have injuries that don’t match the force of impact or medical capabilities e.g. immediate whiplash
If you think you may be a victim of this scheme, it is important not to inform the other driver of your suspicions and, as with any accident, not to admit liability at the scene. Call the police as soon as possible, take plenty of photos of the scene, as well as written notes from witnesses including their contact details. Plus, note down the weather and road conditions.
Lastly inform your insurer as soon as possible and then contact our friendly and experienced car accident solicitors.
