Featured Article - Crash for Cash

Britain’s drivers are now at risk of becoming the victim of the latest craze to sweep the nation; ‘crash for cash’ which has been invented by fraudsters to claim off their insurance, at the expense of innocent motorists.

What is crash for cash?

In a nutshell, a motorist will deliberately cause a crash to claim off their insurance; often with bogus injury claims.

The insurance industry categorises the ‘crash for cash’ under the following:

• ‘Staged’ crashes - two vehicles crash into each other deliberately to claim on their insurance.
• ‘Contrived’ crashes – an accident that never took place. The driver will fabricate a claim of someone driving into them and leaving the scene before leaving any details.
• ‘Induced’ crashes - a deliberate crash in a driver will cause a crash by slamming on the brakes at the last minute, or switching lanes without indicating to ensure someone collides with them.

The most common version of this scam is the ‘induced’ crash, a popular trick for opportunists is to disconnect their brake lights so the person behind has no indication that they are slowing down. Other scenarios can include pulling out at the last minute at a junction or roundabout giving the other driver no chance of avoiding the crash.

Another worrying fact is that that drivers have admitted to performing these themselves, according to research by moneysupermarket.com, with one in twenty people admitting having claimed successfully.

The study found that drivers in London are more likely to be the victim, as 13% of respondents admitted they would or have already attempted a crash for cash scam, and men are twice as likely to stage a crash as women

Steve Sweeney, head of car insurance at moneysupermarket.com said: “Desperate times do often call for desperate measures, but surely this is a step too far for British motorists. We have all been affected by the recession in one way or another, but crashing for cash is not only illegal but wilfully endangers the lives of others.

"According to recent ABI figures, last year over 2,000 dishonest insurance claims worth more than £16 million were detected every week. Our research reveals there are many more motorists causing this type of fraud and getting away with it. Organised motor fraud not only costs the insurance industry, but risks the safety of innocent drivers, passengers and pedestrians. In addition, fraudulent claims cause insurers to increase premiums for honest motorists as they try to recuperate their losses.”

Avoid becoming a victim

There may be times when a collision is unavoidable, but keeping your wits about you, leaving plenty of space between you and the car in front is the best advice we can offer. Avoid anything that will distract you from your journey, such as using a mobile phone, playing loud music or eating/drinking whilst driving – you will become an easy target for any fraudster.

If you are in a crash of any kind; follow your insurance provider’s instructions, and get as much information as possible such as:

• The names of ALL passengers in the car – sometimes the fraudsters will say another person was in the car who conveniently has multiple injuries
• Try and get some photos on your mobile phone to act as evidence for your insurance provider.
• The contact details of any witnesses of the collision.

Crash for cash is hitting all of our pockets; insurance premiums have increased on average by £44 as a result of 30,000 staged ‘accidents’ each year, costing up to £17,000 each according to the IFB (Insurance Fraud Bureau).

Don’t DIY

Please remember that if you are found guilty of trying the crash for cash scam, an official ‘fraud mark’ will be added to your licence which will void any existing cover, the police will be notified and you will struggle to get insurance in the future.