Crash for Cash Scams - Important Information
posted 8th December 2023
Crash for cash scams have been a blight on the insurance industry for many years and are partly responsible for the high cost of insurance premiums.
What are crash for cash scams?
According to the Association of British Insurers crash for cash scams fall into three categories:
Induced accidents - Criminals target innocent motorists and make them appear at fault. Various methods are used to cause accidents, such as pulling in front of a motorist and suddenly slamming their brakes to make the car behind crash into them.
Staged accidents - Insurance fraudsters may attempt to crash their vehicle into another, or create damage to their own vehicle in order to make it appear as if they have been involved in a genuine crash.
Ghost accidents - Fraudsters file insurance claims for accidents that did not occur.
Why has there been a rise in crash for cash scams?
Crash for cash scams are a daily occurrence on UK roads. According to analysis, there are suspected crash for cash claims every four minutes.
These incidents tend to be more common in times of economic hardship, and it's unlikely that criminals will change their behaviour. Crash for cash scams demonstrate fraudsters' willingness to take advantage of motorists by any means possible, and for fleet owners, this is a worrying scenario.
Spotting the signs
Warning your drivers to recognise suspicious driving habits can be an effective way of protecting your company against crash for cash insurance fraud.
- Keep an eye on vehicles that suddenly accelerate or decelerate for unclear reasons, as well as those who appear to be watching your driving closely.
- Fraudsters have often targeted innocent drivers and caused collisions in the past, so existing damage can also be a giveaway.
- Monitor any vehicles that appear to be operating together. Doing so can help you quickly identify and address any suspicious behaviour.
UK crash for cash hotspots?
A crash for cash scam can occur anywhere, however the Insurance Fraud Bureau warns that certain areas are more vulnerable.
The top 5 crash for cash hotspots are:
Birmingham
Bradford
Walsall
Blackburn
Romford
How to protect your vehicles from crash for cash scams
Putting the right security measures in place can protect your vehicles and ensure that your fleet isn’t targeted by criminals.
- Don’t tailgate, keep a safe distance from the vehicle ahead.
- Install vehicle dash cams & place stickers on the back of your vehicles to announce they are fitted.
- Telematics combined with forward-facing cameras can help analyse accident situations, prove liability and prevent false claims.
- Keep your focus while driving, observe unusual or erratic driving by others.
Prevention is key
For many drivers, the idea of their vehicle becoming victims of a crash for cash scam isn't something they want to entertain. But it happens more frequently than you might think.
If something doesn't feel right, encourage your drivers to report it to the authorities and your insurance provider immediately. With some knowledge and a little foresight, you can avoid becoming one of the many thousands of people who fall prey to these fraudulent schemes every year.
If you would like to find out more about this, or any aspect of Motor or Fleet Insurance, please contact our Motor Team on 01442-256783, or at motor@advanceschemes.com.