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Crash Fraud At Record High

Mon, 02 Jun 2014 00:00:00 -0700

CAR INSURANCE fraud is at a record high of £1.3 billion says the Association of British Insurers (ABI). This is a 34% increase over the previous year’s figures and is costing every household in the UK an extra £50 a year on their premium.

Much of the fraud is due to ‘crash for cash’ incidents, where criminal drivers deliberately cause a collision with an innocent driver to claim for damage to their car and whiplash. They do this by performing unnecessary emergency stops or flashing to let drivers out side roads and then driving into them.

However, the insurance industry says the record sum also shows that fraudulent claims are now being detected in greater numbers. In County Durham, for example, 60 people were convicted of crash for cash offences in 2013.

The ABI also says more people are reporting suspicious driving and fraudulent claims. A spokesman for the ABI said: “We all pay for fraudsters who get away with false claims, which is why the insurance industry is spending £230 million every year to tackle the problem.

“Innocent drivers must also remember that we are detecting more fraudsters and we will continue to support innocent drivers when they have to claim on their insurance.”

By Press Association reporters