Recession crashing for cash could mean you can’t get car insurance in the future

With the recession biting, worryingly a high number of motorists admit to staging a crash to claim on their car insurance for cash and even more would consider staging an accident.

According to moneysupermarket.com, over a million motorists would consider staging a car accident so that they can claim on their car insurance.

Fraudulent insurance claims cost the industry over £4 million every day according to the ABI.

This adds nearly £40 to the average annual premium paid by honest policyholders.

Seeking to make a fraudulent car insurance claim has serious consequences – far from helping you save money it could end up costing you more in the long run.

A far better option would be to ensure you get the cheapest car insurance in the first place, obviously still meeting your needs.

Car insurance comparison websites can help with this – check out our article ‘What do car insurance comparison websites offer?‘ for more.

As Steve Sweeny of moneysupermarket.com says ‘Organised motor fraud not only costs the insurance industry millions, but risks the safety of innocent drivers, passengers and pedestrians.

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 motroing 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.’

There are 3 types of car insurance fraud according to the insurance industry:

• Staged car accidents – 2 vehicles deliberately knock into each to claim on insurance
• Contrived car accidents – a fabricated claim for a car accident that didn’t actually happen
• Induced car accidents – a deliberate action by a driver that forces an innocent driver to crash into them – such as stopping suddenly so the innocent driver crashes into the back of them.