An Increase in Motor Insurance Fraud Is Driving Everyone’s Premiums up

Insurance is a necessity. It may not be the most pleasant thing that you do with your day, but nonetheless, it is essential in making sure you are covered if anything unsuspecting were to happen to your vehicle, either while you drive it, or while it’s parked up on the road.

However, recent years have seen an increase of people looking to take advantage of the insurance sector, and unfortunately, its driving the price of premiums up for everyone.

“Crash for cash”, a term I’m sure most readers are familiar with. Crash for cash is a term associated with those looking to benefit from cash windfalls in order to prosper from large pay-outs.

Whether it be from organised criminals, to the lone opportunist, some seek to purposefully get involved in a crash in order to claim not only for car damages, but also for medical pay out. The most common of these being cars that hit the breaks for no reason, causing cars behind to hit them. The driver will then claim that they needed to hit the brakes because of a hazard in front of the car, and the courts ultimately favour the scammer, as it is believed that you should be at a far enough distance to see a car in front of you brake and brake with plenty of time as to not hit them.

An example of insurance manipulation and fraudulent behaviour can be seen as follows:

Anthony Murray, from Orrell near Wigan recently staged an arson attack on his own vehicle. The hope was to claim money for damages, whilst not being discovered of the crime. Ultimately, the incident resulted in two other cars catching fire.

It is incidents like this that cause premium rises for pretty much everyone.

As a result of this incident, there was an adjustment of insurance premiums in the area, with the effect causing ripples in the insurance industry nation-wide. It turns out that Mr Murray had occurred a build-up of debt on his vehicle and could not afford his monthly payments.

How can you prevent yourself falling victim to crash for cash crimes? Well, the main piece of advice is to be careful, and be aware. We understand that sometimes you are in a rush, and want to hurry the car in front of you up by edging a tiny bit closer than you usually would, but you should always keep a safe distance, because anyone could be looking to cash in on their insurance.

Also be aware of cars acting suspicious. Cars driving unusually slow, or in an unusually erratic way should cause alarm bells to ring in your head.

Furthermore, we recommend purchasing a dash cam, or a 3G Vehicle camera in order to ensure that incidents and accidents are recorded, not only will this speed the claims process up if an accident does arise, but may also help to prove your innocents, or catch a culprit.

2017-03-22T12:20:04+00:00 October 27th, 2016|