Car Insurance - Learner's Beware
(courtsey of Moneysupermarket.com)
Never admit liability for a crash
It can be a terrifying ordeal if you are involved in a car accident let alone if you are targeted by fraudsters in this way. Never accept liability. If you feel as though you have been involved in a crash for cash scam, the first thing to do is stay calm and don’t get angry. If possible, record photographs of the damage, the other driver and any other passengers in the car. It is not uncommon for the fraudster to create ‘fictional’ passengers in order to claim more, due to personal injury. Contact both your insurer and the police and explain to them what happened and how you believe you have been targeted by a ‘crash for cash’ fraudster.
Bad habits such as eating, drinking or using your mobile at the wheel make you an ideal target for these criminals. It is these bad habits that fraudsters will look to in order to pin all of the blame on to you. If they are successful in making you admit liability there will be no turning back and their payout will be far greater. So stay safe and always be aware and vigilant.
Remember, if you have a gut feeling something isn’t right, it usually isn’t.
Criminals look to Cash in on New Drivers New drivers are being targeted across the UK in the latest craze to hit the roads. It has been given the title ‘Crash for Cash’ and it does exactly what is says on the tin. Don’t be caught out by these fraudsters. New drivers are the most likely to be targeted as they are less likely to ‘create a fuss’ or cause problems due to their inexperience on the roads. Once the victim has admitted responsibility (usually under extreme pressure), the fraudsters will then launch ‘bogus’ personal injury claims for themselves and often ‘fictional’ additional passengers. The result of this scam will be catastrophic for new drivers who will then see their already ‘extortionate’ car insurance premiums double. According to a recent poll by moneysupermarket.com, one in twenty motorists under 35 have confessed to having ‘staged’ an accident and claimed on the other drivers insurance successfully. More worryingly, 1.7million of all motorists would actually consider staging a motor accident themselves, to claim on their insurance.
Insurance Fraud affects everyone The Insurance Fraud Bureau (IFB) estimates around 30,000 accidents are staged each year, with the average claim totalling around £17,000. It cost insurers about £350 million in 2009, adding £44 to the premium of every driver in the country. The insurance industry has separated this type of motor insurance fraud into three categorise, these are: 1. ‘Staged’ motor accidents - Where two vehicles deliberately knock into each other in order to claim on insurance. 2. ‘Contrived’ motor accidents - A fabricated claim for a motor incident that never took place. 3. ‘Induced’ motor accidents - A deliberate action by a motorist to force an innocent driver to crash into them, such as braking suddenly so they are hit from behind.
Crash for Cash Hotspots Here are the top 20 towns and cities where crashing for cash scams have been rife so far this year. |
