Car insurance fraud remains a “real and growing threat” to road users with crash for cash schemes one of the fastest growing categories of insurance fraud in the UK. Data suggests the issue could be getting worse with fraudulent car accident claims rising 45 percent year on year.
Crash for cash scams are where fraudsters stage collisions to file insurance claims against another driver.
The IFB says the scam costs the industry around £340million per year which is often footed by higher premiums for ordinary customers.
The Association of British Insurers and AX agree there are several types of crash for cash schemes but all have similar outcomes.
Staged collisions are when fraudsters intentionally damage a car but claim that a real accident has happened.
In a bid to protect road users from being caught out by a devastating scam, experts have revealed ways drivers can take precautions while on the road.
They warned drivers must look out for any erratic driving and could identify any vehicles which look like they have rear end damage.
If a crash has already taken place motorists need to look for any injuries that appear to be at odds with the force of an impact.
Calm drivers who have already written down their insurance details could also be another sign the collision was fabricated.
If drivers feel they have been a victim of a scam, they should gather as much evidence at the scene including key facts and photographic evidence.
Road users are also urged to call the IFB’s Cheatline service and the police to report their concerns.
Motorists are also urged to invest in dashcams, vehicle tracking devices and telematic tools which can help investigators determine how an accident happened.