Research has indicated that the North West is the UK’s hotspot for fraudulent whiplash claims.

Insurers Direct Line said that the top five locations for fraudsters to stage an accident in order to submit a personal injury compensation claim are in the North. So called ‘crash for cash’ schemes involve the fraudster performing an emergency stop, usually at a busy slip road or roundabout, causing the driver behind to crash into them. That driver, who is the real victim, is then held liable. The fraudster then submits a claim to the victim’s insurance company for bogus injuries such as whiplash.

The scam harms those with genuine personal injury compensation claims or whiplash claims and costs motorists millions each year. Figures released estimate that fraudulent claims cost an eye-watering £350 million per year and add £44 on a motorist’s insurance premium and can have a negative impact on the time it takes to pay out on genuine claims.

Efforts by the industry to combat fraudulent claims are becoming increasingly effective. A lot of resources have been committed to monitoring traffic data, and anti-fraud teams are sent to investigate hundreds of sites around the country regularly used by scammers to stage accidents, including the roundabout at Eden Point in Stockport, Centenary Way in Trafford Park, Manchester and the Haslingden roundabout at junction 5 of the M65 in Lancashire.

However, motorists who have genuine accidents at such sites will see the time it takes to resolve them increased greatly, as insurers will scrutinise them fully.