Birmingham tops UK crash for cash hot spot top 10 ~ station of gear

Last year saw over 3,000 fraudulent crash for cash claims being made, with insurers detecting one every three hours

2016-03-31 09:03

Insurers detected over 3,000 fraudulent 'crash for cash' claims in 2015, with one-in-four taking place in Birmingham, according to new research by insurer Aviva.

Although the Government has introduced new measures to tackle insurance fraud, motor insurers across the UK still detect a fraudulent claim being made every three hours.

Worryingly, the number of induced accidents – where fraudsters deliberately crash with innocent motorists in the hope of claiming whiplash compensation – have only dropped by two per cent since 2014.

Figures from the Insurance Fraud Bureau suggest crash for cash schemes cost UK insurance providers £336million a year, with whiplash claims adding another £2billion a year to the bill. Because of false whiplash claims, honest motorists are estimated to pay on average £90 more for their insurance. Aviva alone has over 17,000 suspicious whiplash claims under investigation.

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The better news is that the number of staged accidents – where two damaged cars are brought together in order to trick authorities in believing an accident occurred – has fallen by 40 per cent, largely thanks to new fraud prevention tools used by insurers like Aviva.

In the UK, Birmingham retains the unfortunate top spot for most crash for cash claims, with North and East London second and third. However, more worrying is the number of new entrants in the top 10 list for crash for cash hot spots. East London, Coventry and Oldham, all feature in the list for the first time, which according to Aviva, could point towards a pattern of migration for fraudsters.

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Tom Gardiner, Head of Fraud, Aviva, said: "We remain very concerned that fraudsters continue to put their own greed ahead of innocent motorists’ safety. Our figures show induced accidents now account for nearly half of all organised motor fraud we detect.

"Crash for cash does not just push up premiums for genuine customers, it puts innocent motorists at risk. It is also a significant drain on scarce public resources such as ambulance, police and A&E time, all of which are wasted on these entirely bogus claims. The number of whiplash claims is a problem unique to the UK and needs urgent reform."

2015 Top 10 Crash for Cash Locations	2014 rank
1. Birmingham	1st
2. North London	3rd
3. East London	New entrant
4. Leeds	5th
5. Harrow	7th
6. North West London	8th
7. Bradford	9th
8. Luton	2nd
9. Coventry	New entrant
10. Oldham	New entrant

Source: Aviva

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Martin Saarinen

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