Crashing for cash

Desperate Brits are being driven to extreme measures behind the wheel because of the recession, according to moneysupermarket.com. Research from the UK's leading price comparison site reveals more than a million (1,020,000) motorists would consider staging a motor accident in order to make a claim on their insurance. Worryingly 340,000 motorists admit to having already successfully done so.

The insurance industry separates this type of motor insurance fraud into three categories:

‘Staged' motor accidents; two vehicles deliberately knock into each other in order to claim on insurance.

‘Contrived' motor accidents; a fabricated claim for a motor incident that never took place.

‘Induced' motor accidents; a deliberate action by a motorist to force an innocent driver to crash into them, such as braking suddenly so they are hit from behind.

The research found men are twice as likely to have staged a motor accident (five per cent compared to two per cent of women). Twenty-somethings pose the most danger on the roads, with three per cent admitting to having already successfully made a fraudulent motor claim, and a further six per cent would consider it. The results also reveal Londoners as the riskiest behind the wheel - six per cent have or would consider committing motor fraud, compared to just two per cent in Northern Ireland and Wales1.

Steve Sweeney, head of motor insurance at moneysupermarket.com said: "Desperate times do often call for desperate measures, but surely this is a step too far for British motorists. We have all been affected by the recession in one way or another, but crashing for cash is not only illegal but wilfully endangers the lives of others."

According to the ABI fraudulent insurance claims cost the industry over £4 million every day or £1.6 billion per year - and adds nearly £40 to the average annual premium paid by honest policyholders. It estimates over 22,500 fraudulent staged and induced motor accidents took place across the country between 1999 and 2005.

Steve Sweeney continued: "Our research reveals there are many more motorists causing this type of fraud and getting away with it than the industry is aware of. Organised motor fraud not only costs the insurance industry millions, but risks the safety of innocent drivers, passengers and pedestrians.

"Any motor insurance claim proved to involve an organised accident will be considered as fraudulent by an insurer, and is likely to have drastic, long-term affects on your motoring as a consequence. If found guilty, an official "fraud mark" could be added to your license; this will prompt your insurer to void existing cover and probably refuse you cover in the future.

"Regardless of how tempting it may seem to get your hands on some extra cash, carrying out organised motor fraud whether it is ‘staged', ‘contrived' or ‘induced', it really isn't worth the risk. After all, it could end up costing you more in the long run."