What are crash-for-cash scams, how do they work and what to do if you are a victim?
CRASH-FOR-CASH scams are on the rise with around 30,000 fake car accidents and insurance claims taking place in the UK every year.
Here's all you need to know about the con that is pushing up car insurance premiums for drivers...
What are crash-for-cash scams?
A crash-for-cash incident is where a driver stages a car crash so they can make a fraudulent or exaggerated insurance claim.
It often sees scammers deliberately drive badly so that it forces another motorist to collide with them.
One tactic fraudsters can use is pulling in front of you quickly before braking sharply so you have no option but to go in the back of them.
Another ploy used is slamming on the brakes when approaching a pedestrian crossing, even if the road ahead is clear and again causing a driver behind to smash into the back of them.
Scammers do this so they can make a claim through their insurance company in a bid to get money.
If they successfully claim the cash, it is quite often used to carry out serious crime.
A common tactic is to claim the scammer has been a victim of whiplash, which can often lead to the biggest payouts.
Whiplash claims are 50 per cent higher than a decade ago despite the UK having some of the safest roads in Europe – and a fall in the number of accidents.
But in response to this, insurance firms are cracking down on those dishonest drivers who dramatically exaggerate their claims to try and secure a bigger settlement.
Capping compensation would see the average pay-out cut from £1,850 to a maximum amount of £425.
What do I do if I'm a victim of a crash-for-cash scam?
There are several things you can do if you think you might have been involved in an accident, which is a crash-for-cash scam.
Firstly, you should never admit liability for the crash and keep any suspicions about the accident to yourself.
If you can, take written notes and pictures of any evidence and take down a description of the other driver and what they say.
Photos can be taken of the scene and of any damage to the vehicles, to act as proof.
The crash should also be reported to police as this may cause the fraudster to back down.
You should also contact your own insurer and the Insurance Fraud Bureau Cheatline on 0800 4220421 to report your concerns.
How can I avoid being involved in a crash-for-cash scam?
Scammers will go to great lengths in order to carry out crash-for-cash scams.
However, according to the AA, there are several things you can do to avoid becoming a victim of the con.
And many of them include paying due care and attention to the road ahead and allowing plenty of space between your car and the one in front.
You should also be wary of any vehicles in front of you that appear to be driven erratically or slowing down for no reason.
Keep well out of the way of a car whose brake lights appear not to be working and never assume flashing headlights are a sign for you to pull out into the road - as this is also a tactic used by scammers.
Another piece of advice is to fit a dash cam camera on your vehicle with the aim of having your own secure video footage of any incident on the road.
Here is our handy dash cam buying guide.
