Insurance news
British drivers unaware of risks
11 January, 2007
Britain is experiencing a steep increase in a new crime trend – staged or deliberate motor accidents, boosting insurance claims by £1.5 billion a year.
Bogus claims made by drivers who deliberately cause an accident with an innocent motorist add 5 per cent to the premiums paid by honest policyholders.
But recent research has revealed that 41 per cent of British drivers have never heard of the crime. A further four out of ten would not know if they had been in a staged accident and only around half of British drivers would know what to do if they suspect they have been in an intentional collision.
The fraudsters frequently increase the amount that they are claiming for from the victim’s insurance company in various ways, such as by adding non-existent or phantom passengers to the claim.
The criminals may also use third parties such as mechanics and doctors, in their claim to make it look genuine.
The innocent victim can then be left with an increase in their motor insurance premium and can often lose their valuable no claims bonus.
Royal Sun and Alliance’s UK counter-fraud manager, ex-Metropolitan Police Detective Superintendent, John Beadle, said: “Staged motor accidents are on the rise and are potentially extremely dangerous. Not only do they cost honest drivers millions of pounds each year, but they also put innocent motorists in danger.”
Top ten tips for motorists who suspect they may have been involved in a staged accident:
• If you suspect you have been involved in a staged accident, don't say anything other than 'it is a matter for our insurance companies
• If anyone is injured, the police should be called
• If possible take as many pictures of the accident, including the driver, passengers, vehicle and any damage, as possible
• The identity of the driver is crucial so take a good description
• Establish how many passengers are in the other car and again, take a good description of them
• Take note of any other cars involved including damage and registration numbers
• Try to find an independent witness for the accident but be wary of any witnesses quick to offer their services as they may be corrupt
• Be wary of any companies who contact you quickly offering to repair your car, unless these are through your insurance company
• If you suspect the accident was intentional, inform your insurance company at the earliest opportunity
• If you know of anyone involved in staging accidents you can confidentially call the IFB Cheatline on 0800 328 2550
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