Many motorists will have heard the term “crash for cash” in relation to motor insurance claims. This is where one or more fraudsters damages another vehicle on purpose by, for instance, deliberately driving into the back of a vehicle that may be waiting at a set of traffic lights and then submitting a fraudulent insurance claim in respect of personal injury such as whiplash.
It is estimated that it costs the insurance industry in the region of £336 million per annum in respect of such claims with the motorist having to bear the brunt of increased car insurance premiums due in part to such claims.
Well, the Insurance Fraud Bureau (IFB) has recently published some data relating to the top postcodes where such crash for cash incidents take place. So, where in the UK are such accidents likely to happen?
It is interesting that Birmingham is the number one city for such claims with ten postcodes featuring in the top 30 postcodes in the UK. Of those, five are in the top 10 postcodes. Manchester has five postcodes in the top 30. Bradford also has five postcodes in the top 30. Oldham has two postcodes and Bolton one postcode in the top 30. London has three postcodes featuring in the top 30 postcodes.
Obviously, whilst the above areas feature highly on the list of postcodes where a crash for cash scam is likely to take place such an incident could occur anywhere in the UK so it is always a good idea to look out for such accidents. If you feel that you have been on the receiving end of such a scam then you should notify the police as well as your insurance company and the IFB.
The more crash for cash fraudsters who are brought to justice the better. If this were to happen more frequently then it will be interesting to see if motor insurers reduce the premiums they charge policyholders.
