If you’ve never heard of ‘crash for cash’, where fraudsters stage car crashes for insurance claims, you’re not alone but it’s becoming increasingly big business.
Over 4,000 people were targeted between June 2021 to July 2024, leading to fraudulent insurance claims worth an estimated total of £70 million.
‘Crash for cash’ as the name suggests, is a scam whereby fraudsters stage a car crash in order to claim on your insurance. It can be lucrative for criminals but potentially dangerous – as well as costly – for car drivers. The problem’s so serious, it’s estimated to add around £50 a year to the cost of an average car insurance policy.
A spokesman for the Association of British Insurers, the trade body for the insurance industry, said: “Ultimately, fraudsters harm all law-abiding motorists: beyond the obvious safety implications, they cause unnecessary work for emergency services and the NHS, and innocent victims of induced accidents can lose their no-claims bonus and may see their premiums rise following an ‘accident.’”
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What are crash for cash accidents?
Crash for cash accidents often happen at busy roundabouts or junctions, when you’re likely to be concentrating on several things at once.
- Typically, the car in front will brake suddenly, forcing you to crash into it. It’s the easiest type of accident to demonstrate as being your ‘fault’.
- Some criminals disable their brake lights so there’s no warning that they’re going to stop.
- Other fraudsters’ tactics include damaging their own vehicles, claiming for hire cars and time off work.
Fraudsters make money by claiming against your insurance; often for repair work that’s never been carried out, or for whiplash compensation, which may be for fictitious passengers.
According to claims data from insurer Allianz, there has also been a sharp increase in fraud involving motorbikes and scooters attempting to purposefully get ‘hit’ to make an insurance claim. For example, drivers may be targeted as they park, with bikes riding past just as the driver opens the car door so that it hits them, making it appear as if it’s the drivers’ fault.
Four in ten of these accidents happen during the school run and rush hour, between 3-7pm. Lunchtime also seems to be a prime time for fraudsters, with 27% of collisions happening between 11am-2pm. More than one in four incidents (27%) occurred on a Wednesday.
Matt Crabtree, Head of Financial Crime Intelligence & Investigation Strategy at Allianz personal lines business said: “It’s shocking that we saw a 60-fold increase in the number of motorbike ‘crash for cash’ claims in 2023. Innocent victims are being physically and emotionally affected by this dangerous crime, and this is also putting young children, drivers, and passers-by at significant risk. We’re committed to working with the police to bring these criminals to justice.”
Separate data from LV= found that the majority of crash for cash incidents take place in the capital, with over half of incidents taking place in Greater London. Croydon in South London was named as a particular insurance fraud hotspot in 2023, alongside Enfield in North London, as well as certain locations in South West London.
Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £530* per year.
*51% of consumers could save £529.95 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from February 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
What you can do
The best way to protect yourself from falling victim to crash for cash scammers is to fit a dashcam in your car. Having dashcam footage available in the event of a claim against you can provide proper, reliable evidence that can establish fault, both to the police and your insurer.
If you think you’ve been involved in a crash-for-cash accident, the Insurance Fraud Bureau issues the following advice:
- Don’t give in to demands to pay cash there and then.
- If you have a cameraphone with you, take pictures of the damage, the vehicle and the number of passengers in the car (but only if you feel it’s safe to do so).
- Take down details, such as the registration, make and model of the car and make a note of the damage.
- If you or anyone else has been injured, you should call the police.
Normally the advice would be to get hold of independent witnesses, but with crash for cash accidents, it’s better to be wary of anyone who seems particularly keen to help. They could be part of the scam and will back up the fraudsters’ version of events.
What are insurers doing to tackle crash for cash scams?
Tell your insurer immediately if you think you’ve been the victim of a staged accident – even if it’s just a suspicion. If they don’t think the accident is genuine, they shouldn’t pay the claim. Insurers say they’re aware of this problem, but some can be more helpful than others.
If your insurer wants to pay a claim that you believe is suspicious, and they refuse to listen to your version of events you can complain to the Financial Ombudsman Service, an independent complaints service (that’s free to use).
The only problem is that you have to complain to your insurer first and they have up to eight weeks in which to resolve your complaint before the Financial Ombudsman Service can get involved. Find out more in our guide How do I complain about a financial company?
You should also call the police to report your suspicions and tell the IFB’s Cheatline on 0800 422 042 that you think you’re a victim of insurance fraud.
Jon Radford, Head of Intelligence, Investigations & Data Services at the Insurance Fraud Bureau (IFB), said: “Crash for cash scams take place across all corners of the UK and have a devastating impact on innocent road users, so we urge the public to be vigilant to signs of this dangerous activity. We’re collaborating closely with insurers and the police to help bring these reckless insurance fraudsters to justice. If anyone believes they have evidence of a crash for cash scam they can report it to our confidential CheatLine.”
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Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £530* per year.
*51% of consumers could save £529.95 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from February 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.