Putting a stop to ‘Crash for Cash’

Posted by: Neil Murphy | Posted on: September 29th, 2014 | 0 Comments

Police are enforcing stricter rules on motorists ‘crashing for cash’. There has been a significant increase in the amount of convictions made over the past months, with

Three men receiving convictions from Reading, for targeting motorists in a bid to receive compensation as part of the crash for cash scam. Two men were also jailed and a further two given a suspended sentence at Liverpool crown court.

According to the Association of British Insurers (ABI) insurance fraud rose by 18% in 2013, with a record £1.3billion claimed by motorists.

Although some of the claims are legit and motorists are entitled to compensation post accident, some of the money has been given too generously as motorists increase the claim by adding items such as stolen phones, damaged goods or exaggerated injury.

On the other scale there is organised gangs that put motorists in danger by causing accidents so they can claim off the insurance. The trend known as ‘crash for cash’ is a growing trend that is increasing at a worrying rate, meaning police are trying to put a stop to it.

There was an increase of 51% on the claims for whiplash as ‘crash for cash’ costs the industry more than £10 million a year .

‘Crash for cash’ fraud happens when innocent drivers are forced to collide with a car by the motorist in front slamming on their breaks for no reason or having their break lights disabled. The motorist behind receives a claim on their insurance for both whiplash, damage and other injuries.

As a bid to clamp down on the fraud The Ministry of Justice is taking a number of steps. These include courts being able to refuse compensation to people found to be exaggerating claims, panels of independent medical practitioners will be introduced to diagnose victims of whiplash to ensure their claim is legit and lawyers will be banned from giving out incentives such as ipads to cover a claim.

Hopefully these first steps will help combat the problem and save the industry millions of pounds over the coming years.

When on the road be aware of the dangers you could face and look out for drivers indicating to turn right or left as they may continue to drive when you pull out.
Also always keep a safe distance behind the car in front to ensure you always have enough room to perform an emergency break when needed.