Motor car insurance fraudsters have been moving from the cities and out to the country in an effort to plan and execute their ‘crash for cash’ schemes in order to continue to defraud car insurance companies, new research findings now indicate.
Crash for cash scammers will stage accidents on slip roads or busy roundabouts by making emergency stops for the sole reason to cause the car behind them to shunt into them from behind. Bogus claims are then made to the discount car insurance provider of the innocent motorist, and they often involve completely fabricated passengers and injuries to them.
However, these fraudsters, who have before now been favouring locations in urban and suburban areas, have now been found to be looking for new sites in rural areas that have before now been only the sites of honest accidents. These fraudsters think that by doing so, detection of these scams will be more difficult, but what they don’t take into account is that by moving to these low-traffic areas, it is more likely for innocent motorists to be seriously or even fatally injured because average speeds on country roads tend to be higher than on city ones due to less traffic.
Slip roads, junctions, and roundabouts are among the top ten hotspots for crash for cash accidents, with one concerned researcher stating that such scams pose serious risks to public safety and can not only result in higher insurance premiums for honest drivers but can also cause genuine claimants to have to wait on their payouts as any accident that occurs at a site known to be frequented by scammers needs to be investigated that much more fully.
The investigation system used in the research was such that areas of concern can be pinpointed in the future. Fraudsters cannot be tolerated by the insurance industry, experts say, and as insurers have a duty to protect their customers, they have a tendency to campaign for the harshest penalties for scammers caught in the act.