We all know that car insurance is getting more expensive. One of the reasons why is because of organised gangs and car insurance scams.
I recently wrote about a gang that got sentenced for crash for cash fraud. Also another news story on how Birmingham is currently the car insurance scam capital of the UK.
Well, another gang hit the headlines this week. This particular gang comprised of 19 men from East London. It’s estimated they made about £1.1 million pounds from car insurance companies during the last couple of year.
A Police spokesperson commented that the gang saw the car insurance industry as “easy money”, which is why they made it their top criminal activity.
Something has to give
That is part of the problem right there. As long as these gangs see these companies as an easy way to do their car insurance scams then nothing is going to change. In fact, it wouldn’t surprise me if more gangs get in on the act over the coming years…unless something is done.
Although the gang was based in East London, they typically did most of their crash for cash scams in other parts of the UK, travelling to places such as the Midlands and Yorkshire.
The gang leader, a 35 year old from Luton has just been locked away for a total of 5 years. Other prominent members of the gang received sentences such as 4 and half years, 22 months, 20 months and 16 months.
There was also suspended sentences and community service orders handed out to 4 members of the gang.
This is just one gang that is off the roads for a few years, there many more exactly like them all around the UK right now.
Identifying car insurance scams
As I’ve mentioned before most of the responsibility needs to be taken by the car insurance companies themselves. Quite simply, they should become better at spotting these fraudulent claims, and then putting a stop to them once and for all.
If this happened then it would be difficult for gangs to get to the point where they can scam £1.1 million pounds. Most likely they would give up and do something else.
Unfortunately, I’m not sure if this going to happen. Many insurers seem content to leave things as they are and let their customers pick up the bill for these car insurance scams. If you’re wondering why your policy has become so expensive over the last few years then this is the reason…you are paying for it.
That’s not to say there are not some cheap car insurance companies out there, the trick is to compare many different ones in order to get the best deals, something which can be done by filling out a quick form.