Be warned - motor insurance scam by gangs and its impact on your car insurance premiums
It has been recognised for some time that some people will fake accidents and/or exaggerate injuries, to obtain compensation payments from insurance companies. However, the relatively small percentage of law-breakers have now taken it further by deliberately arranging road traffic accidents in an attempt to then obtain compensation for damage and injuries. This is a sinister development which has led to the ABI (Association of British Insurers) setting up a specific fraud compensation unit called the Insurance Fraud Bureau, to investigate suspicious claims. It is believed that fraudulent claims amount to £4 million pounds a week.
The scam usually involves 2 passenger vehicles and a lorry. The 2 cars are driven by gang members and the innocent party is the lorry driver. However, the scam can be used in relation to any innocent vehicle on the roads.
The gangs position the 2 cars so that one is in front of the innocent target vehicle and one behind it. The gang car behind the innocent motorist overtakes both the innocent motorist and other gang car, pulling in quickly in front of the other gang car. The effect of this is that the second gang car brakes suddenly and deliberately, causing the innocent motorist to crash into the back of the second gang car. The majority of rear end crashes are usually the fault of the driver who crashes into the back of the vehicle in front. In this case that is the innocent motorist who crashed into the back of the second gang car whilst the other gang car drives off from the scene. It all looks innocent and "just an accident" but in fact it is a very carefully calculated and arranged scam to deliberately cause an accident. The gang then can claim compensation for vehicle damage, uninsured losses, and personal injury.
With the scam now costing over £200 million pounds a year it needs to be stamped out as our insurance premiums are increasing to cover the fraudulent payments. Let’s hope the Insurance Fraud Bureau is able to stamp it out. Be careful you do not fall foul of this practise. If you suspect anything then speak to your insurer, so that innocent motorists do not foot the bill for crime yet again.
