Motorists Are Staging A Car Accident And Successfully Claiming On Car Insurance

Drivers trying to make some cash are taking dangerous measures, including for 1 in 20 drivers staging or inventing a car accident to claim on their car insurance.

According to research by moneysupermarket.com, 1.3 million motorists admit they have or would consider deliberately causing a car accident, or inventing one, to make a claim on their insurance.

Two per cent admit to having already successfully done so.

The percentage varies depending on where the motorist is – 10% of Londoners have or would consider committing motor fraud compared to less than 1% of those living in Wales.

The insurance industry separates this type of car insurance fraud into three categories:

• ‘Staged’ motor accidents; two vehicles deliberately knock into each other in order to claim on insurance.
• ‘Contrived’ motor accidents; a fabricated claim for a motor incident that never took place.
• ‘Induced’ motor accidents; a deliberate action by a motorist to force an innocent driver to crash into them, such as braking suddenly so they are hit from behind.

Peter Harrison, car insurance expert at moneysupermarket.com said: “Crashing for cash is not only illegal but wilfully endangers the lives of others. It seems Brits really are going a step too far this time.”

He added “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, an unnecessary addition to the spiralling insurance premiums we are currently witnessing.

“Any motor insurance claim proved to involve an organised accident will be considered as fraudulent by an insurer, and is likely to have drastic, long-term affects on your motoring as a consequence.

“If found guilty, an official “fraud mark” could be added to your license; this will prompt your insurer to void existing cover and probably refuse you cover in the future. In addition, insurers are also likely to pass your details to the police for prosecution.”

MoneyHighStreet comments “There are far better, law abiding ways to get some extra cash than committing a crime such as this. It simply isn’t worth it.

“A better option is to make sure you get the best possible deal on all your personal finance needs, from home and car insurance, to your utility bills, your credit cards and of course your day to day expenses too.

“Save money as well as make money – but do it all legally!”