Crash scams reach record levels

UK motorists are facing an average £40 rise on their insurance premiums because of 'crash-for-cash' scams.

The number of fraudulent claims has been steadily rising, to the point where motoring insurance fraud has now become the highest in value, costing insurers more than £350 million in 2009 with UK drivers forced to cover the cost.

In 'crash-for-cash' scams the fraudsters will perform unexpected or dangerous manoeuvres, such as emergency stops, that cause other motorists to crash into them.

As the innocent driver is technically at fault - because they have hit the other car - the fraudsters can then claim against their insurer. These claims often include injuries - sometimes for people not in the car at the time - exaggerated repair costs, excessive storage fees and transport charges.

Usually the victims are targeted - with the fraudsters looking to get involved in accidents with older people, or company car drivers, who are more likely to accept the claim and cause minimal hassle.

The Insurance Fraud Bureau (IFB) says that each successful scam can net the criminals up to £30,000, although the claims tend to average at around £17,000.

According to statistics, Birmingham is the current hot spot for fraudulent claims, with Liverpool and Blackburn not far behind. Incidents are also reported with growing frequency in areas of London.

The IFB reports that around 30,000 accidents were intentionally caused last year, with the cost of these adding more than £40 to every policyholder's premium annually.

To find out if the cost of the your insurance is on the rise and to get the best deal, go to Parker's Compare.