Car insurance fraud takes its toll on the UK consumer

CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 25 SEPT 2013:

It’s not just car insurance companies that suffer when it comes to insurance fraud – regular Brits end up embroiled in accidents and left with high rates after!

Fraudsters have been up to no good lately, and the worst part is that they’re getting increasingly clever when it comes to pulling the wool over the eyes of honest drivers and insurers alike. In fact, news broke this week of the latest attempt to orchestrate the kinds of accidents that can see a regular motorist’s car insurance rates rocket after being involved in,

The new, dastardly scheme, in which a scammer will lie in wait at a junction and then flash his or her lights to let another motorist out, only to then crash into the poor sod deliberately, has been given the pithy name ‘flash for cash’ – and it’s growing more prevalent by the day.

So what’s the cost to us? Well apparently around £392 million annually, according to Metropolitan Police – and that cost is distributed across the entirety of the motoring public that pays for motor car insurance. You can look forward to rate hikes of anywhere between £50 to £100 as a result, according to industry experts.

Of course, sometimes the fraudsters are caught – or aren’t doing it to turn a profit. That’s probably the most tragic, and it’s what Kristian Wall did when an uninsured friend of him crashed Kristian’s vehicle.

Yes, I know that Kristian’s heart was in the right place – he didn’t want to see his mate get into trouble for driving uninsured – but let’s be honest here: he shouldn’t have let his friend get behind the wheel of his own car in the first place.

For what it’s worth, he’s lucky he didn’t end up thrown in jail for six months. In fact, the judge gave him a two-year suspended sentence instead, provided he performs a shedload of community service hours and stays under curfew for something like two months. That should probably teach him not to muck about when it comes to insurance fraud, despite his original desires to keep his friend out of hot water.

Well, that and I’m sure he would have liked for his insurer to pay for the damage done to his car. Now he’s going to be out-of-pocket; maybe he can ask his friend for a few quid so he can take public transport, eh?

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