Impounded Car Insurance UK looks into costs of fraudulent fake accidents to insurance companies and victims
The Insurance Fraud Bureau (The Body backed by Insurance Companies) estimates claims and expenses resulting from staged accidents to be around £400 million. This cost is mainly absorbed by honest drivers as divers without insurance will not being paying any premiums and risk having their car impounded by the police.
Criminal fraudsters are using 3 different methods to defraud insurance companies, these being: induced accidents, staged accidents, and bus crash accidents.
Induced accidents occur when the fraudulent driver allows the victim to overtake them but then accelerates and causes an accident, thus claiming with their insurance company that it was the victims fault for invading on his right of way, ultimately it comes down to the fraudsters word vs the victims word.
Another way induced accidents occur is when the fraudulent driver is coming to a roundabout but then brakes suddenly causing the driver behind to crash in to them, and getting the blame for the accident.
Staged and imaginary accidents occur when fraudsters orchestrate a collision most often where there are no other witnesses around. There are also cases where accidents are fabricated, example of this could be when fraudster spots a car with damage and takes a photo of it and then telling their insurance company that it had collided with them.
Bus crash accidents are increasing in popularity fraudulent drivers are braking hard in front of them without the bus having enough time to stop before colliding, fraudsters know that they can get a quick payout from their insurance companies which is why they choose to make a fraudulent claim.
Suspicious activity that insurance companies look for:
Incidents occurring in the early hours between 10pm till 6 am where no witnesses will be present
Claims where there are 3 or 4 adults in the car to increase claims for whiplash and other injuries from their insurance company
Claims where the other party produces a pre written note containing policy and vehicle registration details.
As an Insurance company, Impounded car Insurance UK is on the lookout for such fraudulent claims. Impounded Car Insurance UK is an insurance company specialising in Impounded Car Insurance policies, special short term insurance policies are available to help you release your car from the police compound.
