Car insurance news

Fraudsters target car insurance industry

Staged car crashes at roundabouts are become an increasingly persistent menace to motor insurance firms, industry experts have warned.

Intentionally causing low impact crashes at roundabouts and then making claims, including for whiplash, has become a popular way for fraudsters to make quick cash at the expense of car insurance companies.

Rear-end shunts are unlikely to cause serious injury and fraudsters are taking the chance to con innocent drivers and their motor insurance providers out of thousands of pounds by making immoral claims.

James Pinder, from Ricksons Solicitors, said, "The favourite trick is to drive onto a roundabout then suddenly stop so the vehicle behind runs into their back.

"Invariably the driver then puts a claim in for whiplash and with the average payout for a whiplash claim around £2,000, its easy money for those prepared to take the chance."

Car insurance companies are beginning to make a stand against the fraudsters, and criminal charges are brought against those that perpetrate motor fraud.

Rebecca Pearson from Duck2Water Car Insurance Services, the cheap car insurance experts, warned, "Staged accidents for the benefit of making false claims are something of a problem in the motor insurance industry, but those that commit such crimes can expect to be dealt with severely when they're caught."

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