Industry paying the price of rising crash-for-cash scams
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By Roger Brown
TOWERGATE MD Larry Smith told the Commercial Motor Live insurance conference session that the crash-for-cash phenomenon was increasing in the UK.
According to Smith, an estimated 30,000 accidents were staged in 2010, with the average crash netting criminals £17,000.
Smith said the company had investigated a man who had staged 92 accidents on one roundabout alone, with claims totalling £12m, before he was caught.
“Crash-for-cash scams put the lives of innocent people at risk and add an estimated £50 to every motoring policy,” he said.
Smith advised hauliers on what they should do to avoid getting caught up in an incident: l don’t tailgate; l look beyond the car in front; l concentrate; l consider fitting forward-facing cameras to vehicles; l fit telematics – because suspected fraud cases can be vigorously fought with data.
He also advised that if an accident does happen, drivers should: l report it to insurers without delay; l get the date of birth of the other driver and record the number of passengers in the other vehicle; l try and find witnesses.
“It is possible to beat fraudsters by fitting a simple forward-facing camera, which cost about £200 and are well worth the investment,” added Smith.