Car insurance rates hiked due to fake accidents

It seems that most British drivers’ car insurance rates will fluctuate wildly at a moment’s notice, especially when the UK is not by any means a cheap place to operate and own a motorised vehicle, but it seems that fake car accidents are driving those premiums even higher.

Over the past few months, new reports have revealed that car insurance scam figures have been rising steadily, something that has been costing the auto insurance industry in the UK in excess of £350 million, adding an average of £44 to insurance premiums, even for those drivers with relatively discount car insurance policies.

In fact, the UK Insurance Fraud Bureau reported that 30,000 car accidents last year were staged in actuality, which resulted in damages of £17,000 on average for each collision.

These so-called staged accidents have indeed become a common occurrence, yet industry experts report that tactics are only one of many employed by fraudsters who are looking to pull the wool over both motor car insurance companies and their customers as well.

The majority of new insurance fraud cases have been taking place in the north west, in locales such as Leeds, Birmingham, and Liverpool, in neighbourhoods traditionally hit very hard by the recent economic downturn.  The fact that there are people looking for ways to make a quick pound is not surprising, but honest drivers have had to foot the bill for these unscrupulous few.

The scam usually unfolds by someone purposefully cutting an unwitting motorist off before slamming hard down on their brakes, which forces the victim into a rear-ender, an ironically easily avoidable yet quite common accident type, something that works in the perpetrator’s favour when he or she goes to file a claim with their insurance provider; since traditionally when a driver collides into the rear end of a second driver’s car, the fault has usually lain with the former and not the latter.

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