UK Motorists Crashing for Cash

CHESTER, England, July 13, 2011 /PRNewswire/ –

        - One in 20 motorists under 35 confess to having 'staged' or
          invented an accident and claimed successfully
        - 1.3 million of all motorists have or would consider staging a
          car accident to claim on their insurance

Recession-hit drivers in the UK are resorting to dangerous measures to
make extra cash, according to moneysupermarket.com
[http://www.moneysupermarket.com ]. Research from Britain’s number one
comparison site reveals one in 20 younger drivers admit to successfully
staging or inventing a car accident to claim on their insurance.[1]

The research also reveals that overall, 1.3 million motorists (4 per
cent) are a dangerous threat to themselves and other road users, admitting
they have or would consider deliberately causing a motor accident, or
inventing one, to make a claim on their insurance. Two per cent admit to
having already successfully done so. Londoners are the riskiest behind the
wheel – 10 per cent have or would consider committing motor fraud compared
to less than one per cent of those living in Wales.

The insurance industry separates this type of car insurance fraud into
three categories:

        - 'Staged' motor accidents; two vehicles deliberately knock
          into each other in order to claim on insurance.
        - 'Contrived' motor accidents; a fabricated claim for a motor
          incident that never took place.
        - 'Induced' motor accidents; a deliberate action by a motorist to
          force an innocent driver to crash into them, such as braking suddenly so
          they are hit from behind.

The research found that of those who had successfully invented or
deliberately caused a motor accident, nearly half (44 per cent) were
‘Staged’, a quarter (24 per cent) were ‘contrived’, and eight per cent were
‘Induced’.[3]

Peter Harrison, car insurance expert at moneysupermarket.com
[http://www.moneysupermarket.com/car-insurance ], said: “We have all been
affected by the recession in one way or another, but crashing for cash is not
only illegal but wilfully endangers the lives of others. It seems Brits
really are going a step too far this time.

“According to the ABI, in 2009 over 2,000 dishonest insurance claims
worth more than GBP16 million were detected every week.[2] Our research
reveals there are many more motorists causing this type of fraud and getting
away with it. Organised motor fraud not only costs the insurance industry,
but risks the safety of innocent drivers, passengers and pedestrians. In
addition, fraudulent claims cause insurers to increase premiums for honest
motorists as they try to recuperate their losses, an unnecessary addition to
the spiralling insurance premiums we are currently witnessing.

“Any motor insurance claim proved to involve an organised accident will
be considered as fraudulent by an insurer, and is likely to have drastic,
long-term affects on your motoring as a consequence. If found guilty, an
official “fraud mark” could be added to your license; this will prompt your
insurer to void existing cover and probably refuse you cover in the future.
In addition, insurers are also likely to pass your details to the police for
prosecution.Regardless of how tempting it may seem to get your hands on some
extra cash, carrying out organised motor fraud whether it is ‘staged’,
‘contrived’ or ‘induced’, it really isn’t worth the risk. After all, it
could end up costing you more in the long run.”

Notes to Editors

[1]Opinium carried out a survey of 2,030 UK adults aged 18+, 25th – 27th
May 2011

According to the DFT, there are 33,481,604 (or 33.4) million drivers in
the UK:

http://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/driving-availability/nts0206.xls

4 per cent of people would consider, or have already, consider inventing
a motor accident or deliberately causing one to make a claim on their motor
insurance. 4 per cent of 33.4 million = 1,339,264 or 1.3 million people

[2]

http://www.abi.org.uk/Media/Releases/2010/07/Bogus_Britain__insurers_expose_over_2300_fraudulent_claims_every_week.aspx

[3] N.B low base size.

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SOURCE moneysupermarket.com