Top five tips to make sure YOU don’t become a victim of motor insurance fraud
The number of car insurance fraud cases in the UK is rising, driving up premiums for innocent motorists - this is how to make sure you don't fall victim to a scam on the road
MOTOR insurance fraud affects thousands of British drivers every year.
And with a rise in the number of "crash for cash" scams, it pays to be prepared to dodge potential fraudsters.
According to a study by MoneySuperMarket, fraudulent claims cost the insurance industry a whopping £780million each year, and drive up premiums for innocent motorists.
The Association of British Insurers recorded 68,000 cases of motor insurance fraud in 2016, with around 25 per cent of those being attributed to crash for cash scams.
Fraudsters deliberately cause an accident and try to claim the other motorist involved was at fault, seeking compensation for damages, injuries and even "phantom" passengers on the victim's insurance.
But the price comparison website has put together some tips to make sure drivers aren't ripped off by false claims.
Top five tips to protect you from being a victim of insurance fraud
- Always be aware that someone could try to stage an accident - avoid driving close to the vehicle in front in case it brakes suddenly.
- If you are involved in an accident, call the police immediately and contact your insurance company as soon as possible.
- Never take responsibility for the accident, even verbally, and never settle for cash.
- Install a dash cam to provide undeniable evidence of what happened in an accident and ensure that any false claim will be instantly rejected.
- Take plenty of photos at the scene of an incident. Focus on how many passengers were in the other vehicle and the make of vehicle involved - this can help fight phantom passenger scams.
The most important thing for you can do is beware of the possibility of a fraudster trying to cause an accident.
Watching out for erratic drivers and staying a safe distance from the vehicle in front is a good start.
If you are involved in an accident, you should always call the police and notify your insurer, and be sure never to admit fault to the other driver.
Installing a dash cam and taking plenty of photos of the accident can also help to prove you aren't to blame.
Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “Motor insurance fraud remains a big problem for drivers in the UK.
“Ultimately, it’s honest motorists who foot the bill for fraudulent activity because false claims push up the price of annual premiums by around £50 per motorist.
"With the average cost of a fully comprehensive policy currently sitting at £508 a year, now’s a good time to shop around and see if you could be getting a better deal."