Car Insurance Scams
Who’s doing it ? How are they doing it ? And how can we protect ourselves ? From ‘flash for cash’ to dash cams we’ve got it covered !
Aviva released figures to shock the honest driver – last year saw a 19% increase in car insurance fraud equating to around a cost of £110 million, this is costing us motorists around £50 extra on our car insurance policy. This might well leave you feeling angry and let down by all those dishonest motorists out there and rightly so, 92% of us believe dishonesty is a problem and 64% of motorists want insurers to tackle the problem.
So are we all honest as honest can be or are fraudulent motor insurance claims a grey area that we feel is a victimless crime where the only people punished are the insurance companies who….lets face it probably make a tidy profit …………. The figures seem to suggest we may all be a bit guilty of finding ourselves somewhere in the grey area as it’s reported 66% of us would turn a blind eye to fraud if we knew somebody had committed it and 17% of us knew someone who had faked a whiplash injury to get compensation …….naughty naughty …… And it seems whiplash is the fraud of choice with 78 % of all low value motor injury claims being for whiplash, there were 477,000 claims from 2012-2013 which means there was almost a claim for every minute !
How do we feel when we become a victim of car insurance fraud …..not very happy I’m guessing ….. so how are we being dragged into the dark world of fraud ?
‘Crash for cash’ is popular where others cause accidents by purposefully slamming on their brakes hoping the unsuspecting driver behind them will hit the back of their car, this makes the innocent party’s insurance responsible for repairs and any personal injury claims that might result.
Another more recently ploy has been termed ‘flash for cash’ this really is cruel, whilst waiting at a junction or to pull around parked cars the fraudster will flash, luring you into a false feeling of gratitude as you accelerate ……… do not be fooled …….. as soon as you start moving so do they and the fraudster will claim they never flashed so much as a smile !
They are cruel, cruel tricks the fraudster uses and apparently not alone there are ‘fraud rings’. Aviva revealed it is actively investigating 5,500 suspicious claims linked to fraud rings. These gangs will target those who look less likely to argue such as elderly motorists or women with children in the car.
Don’t believe it’s just the criminals out there who are out to get you, an investigation by the Telegraph revealed insurers may ‘steer’ motorists towards garages on their list of approved repairers to maximise their own profits ….tut tut tut.
How can we fight back ? Easily, all you need is a dash cam ! Sales are soaring, electronics website Digi4u has reported sales rose by 28% in the last quarter of 2013. Still only 3 % of cars have a dash cam here in the UK but the RAC report 4 in 10 drivers are now considering getting one and that 60% would want a camera to record circumstances of an accident.
It seems a relatively inexpensive way to protect yourself Dash Cams are available from around £70, which is probably a lot cheaper than losing your no claims bonus ! So watch out all you fraudsters we’re on to you !
……Just to end on a more entertaining note why not check out these unusual but true insurance claims ….who knew a Christmas tree could cause so much trouble !
The comments above do not necessarily reflect Rivervale's views unless clearly stated.
25 April 2014
Written by Rivervale