‘Crash for cash’: Car insurance warning over potential rise in scams – ‘check the terms’

‘Crash for cash’: Car insurance warning over potential rise in scams – ‘check the terms’

09/21/2021

Crash for cash scam explained by Insurance Fraud Bureau

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With driving habits returning to normal, pre-pandemic levels, drivers are being warned to stay cautious of any potential car insurance scams. Criminals are looking to take advantage of motorists returning to their old driving routines, especially with many making the morning commute back to work.

The Insurance Fraud Bureau (IFB) reported that 2.7 million car insurance claims in the UK from October 2019 to the end of last year.

Around 170,000 of these could be linked to crash for cash scams.

Crash for cash schemes is where criminals will deliberately cause a road collision to claim compensation.

Fraudsters will often drive erratically, slamming on their brakes for no obvious reason in order to cause the car behind to collide into them.

In other cases, fraudsters may use a second ‘decoy vehicle’ to make a sudden, apparently unexpected manoeuvre.

The other vehicle involved in the scam, following behind the decoy, will then slam on their brakes in the hope that the intended victim won’t be able to stop in time.

The decoy car will then typically disappear, making it difficult to prove it was ever part of the scam.

The IFB estimate that crash for cash scams cost a whopping £340 million every year.

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Their insurance premiums could also be hiked up as a result of the collision.

Vanarama advises motorists to invest in a dashcam to help lower their chances of being financially impacted by this crime.

The video evidence is helping to stop scammers by revealing what actually caused the road collision.

Andy Alderson, CEO, and Founder of Vanarama advises: “We always recommend looking around to get the best deal for car insurance, however, it’s important to watch out for red flags from too good to be true deals.

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