Car insurance scams on the rise
24th August 2010
The number of "crash for cash" car insurance scams, where drivers stage accidents in order to claim on policies, is increasing, according to new figures.
The racket - which can see fraudsters claim thousands on pounds on innocent drivers' insurance - has to date been largely centred on the Midlands and the north west of England.
However parts of London are in the top 10 hot spots for the first time, according to new figures from the Insurance Fraud Bureau (IFB), with east London in sixth position and north London in ninth.
The IFB estimates around 30,000 accidents are staged each year, costing insurers about £350 million as the payout for each claim averages around £17,000.
It also means honest drivers are less likely to get cheap car insurance quotes, with an estimated £44 added to premiums because of the scam.
Birmingham is the UK's top fraud hot spot, the IFB said, with the other four top places taken by Liverpool, Blackburn, Manchester and Leeds. Fraudsters usually brake suddenly on a clear road or roundabout to make an innocent motorist drive into the back of their vehicle.
They go on to claim for personal injury, damage to the car and recovery fees.
Sgt Mark Beales, from Greater Manchester Police, warned that criminals targeted their victims carefully. 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."
Copyright © Press Association 2010
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