So-called ‘crash for cash’ schemes, in which collisions are staged in order to file fraudulent insurance claims, are a ‘real and growing threat’. That’s according to a leading vehicle protection and management technology provider.
Indeed, figures from the industry body Cifas, suggest car insurance fraud is one of the fastest growing forms of insurance fraud in the UK. Crash for cash claims increased 45 percent in 2019 – well above the industry fraud average of 27 percent.
According to the Insurance Fraud Bureau (IFB), fraudulent claims cost around £340 million a year. Consumers will feel the effect of this in the form of higher insurance premiums.