The term ‘crash for cash’ applies to people who stage accidents for the purposes of claiming personal injury compensation and compensation for the repair to the vehicles. It’s a growing trend and is costing insurance companies millions every year. It’s also costing the average motorist around £40 on their insurance premiums each year.
According to the Insurance Fraud Bureau (IFB) the number of fraudsters claiming compensation for ‘crash for cash’ claims is increasing.
A common way for these fraudsters to stage an accident is to slam their brakes on hard, often on a motorway, causing the driver behind to rear shunt them. There’s little you can do to avoid them and they’ll claim against your insurance for damages to their vehicle and personal injury, usually involving whiplash claims and compensation for time off work.
Often injury claims will be made for passengers who weren’t even in the car.
The IFB’s John Beadle stated:
The criminal gangs targeting honest motorists are ruthless.
Innocent lives are being put at risk and fraudulent insurance claims add approximately £40 to every premium paid by honest policy holders each year.
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