Drivers Paying For Insurance Scams

• News
• Published: 27 May 2009 in Motoring and Car Insurance

A report claims motorists are paying £40 extra on their car insurance each year as a result of fraudulent claims.

According to the Insurance Fraud Bureau (IFB), "crash-for-cash" scams are the most costly for honest policy holders with Bradford, Blackburn, Oldham and Liverpool the worst places for the activity.

Fraudsters involved in the scams drive to busy road junctions and then perform dangerous and unexpected emergency stops designed to cause innocent drivers to crash into them.

Claims for car damage and often fictitious injuries are then made to the innocent driver's insurer by the member of a criminal ring.

Although work by the IFB and police has stalled the growth of the problem and reduced crash-for-cash network sizes by 11% over the last two years, the practice is becoming more common in previously unaffected areas of the country.

While Luton, Harrow and Walsall are seeing activity decrease, the problem is on the rise in Liverpool, Halifax and Ilford.

IFB chairman John Beadle said: "The criminal gangs targeting honest motorists are ruthless. Innocent lives are being put at risk and fraudulent insurance claims add approximately £40 to every premium paid by honest policy holders each year."