Registered: 24th Nov 2003
Originally Posted By: Pistonheads
Drivers warned that car crash fraudsters are now making £200million a year
Drivers are being warned to look out for criminals who stage road accidents to claim money on insurance. The 'cash for crash' scams are snaring thousands of motorists and experts believe it now costs the insurance industry at least £200million a year.
The scammers often make innocent drivers crash into them so that they can claim for damage and injuries such as whiplash. Usually they will brake hard so that the driver behind goes into the back of them.
Police are now telling drivers to be on the look out for the practice, which is often carried out by well organised criminal gangs. The practice is apparently spreading at an alarming rate and recently the Insurance Fraud Bureau smashed a number of gangs across the country.
Overall motor insurance fraud is costing an estimated £1.6billion a year and around £50 is being added to the average drivers policy to cover the losses. Superintendent Glyn Jones of the Metropolitan Police said: 'Some people see this as a victimless crime but it certainly isn't. Criminal activity like this pushes up everyone's premiums.'