People injured in a car crash are legally entitled to pursue compensation to cover them for financial losses and damage sustained by their cars. Those that are genuinely injured and did not cause the crash have a legitimate right to this money, but the compensation available has led to some deliberately causing or intentionally being involved in crashes just so that they can claim compensation. This is typically referred to as crash for cash and it is just one way in which fraudsters are able to illegally claim insurance money.
One of the most common ways for crash for cash fraudsters to initiate a crash is to take some action that will lead to the car behind driving in to the rear of their car. For example, smashing brake light bulbs or even reversing in to the car behind them. Typically, insurance companies will not defend rear end collisions and so fraudsters use this information to their benefit.
As well as causing the accidents, the fraudsters will usually exaggerate or make up injuries that they have sustained. The size of compensation package that is due to the injured party will depend on a number of factors, including the type and severity of injury that they suffer. Minor injuries usually attract the lowest compensation figures whiles those that require extensive treatment and lengthy layoff will carry much more significant sums.
As well as exaggerating their own injuries, crash for cash fraudsters will usually ensure that they carry passengers with them so that they can claim for injuries too. Again, the actual extent of the injuries may be exaggerated to help win a larger sum. It can prove impossible for the innocent driver to show that they were not responsible for accidents, especially rear end accidents. Certain types of injury, such as whiplash, are also very difficult to prove or disprove and this means that cases of this type are rarely even contested.
Recently, one specific type of crash for cash incident has evolved to become popular with insurance fraudsters. This technique is called flash for cash. The fraudulent claimant will flash their lights to allow the innocent driver out of a junction before driving into them. It will prove nearly impossible for the innocent driver to be able to show that they were flashed by the other driver and so the fraudulent driver will be able to claim that they were in the right and the innocent driver in the wrong.
Crash for cash is dangerous and it costs every driver financially, because it increases the cost of insurance premiums significantly. Unfortunately, cases of this type are on the increase and the police are hearing more and more reports of supposed crash for cash. It is important to remember that anybody that is genuinely hurt in an accident that was not their fault and not of their own making is entitled to compensation but fraudsters are playing the system.
Crash for cash fraudsters will often work in groups. As well as the fraudster or fraudsters that are in the car itself, there may be fake witnesses to assist them in convincing the police of their story. It is possible for a single crash to be worth several thousands of pounds to those that are involved and it is estimated that insurance fraud rings claim tens of millions of pounds in fraudulent compensation every single week. On average, this places an additional £50 per annum on the cost of every policy holder’s insurance and the accidents caused may lead to serious injury on the part of the innocent driver as well as the loss of no claims bonuses, and even confidence when driving.