Direct car insurance is vital on today’s roads; people on bikes, erratic drivers, children and animals not under supervision are just some of the everyday problems encountered by the ordinary motorist. Another problem you may not be aware of but is becoming more common is the “staged accident” and we are all paying around £40 on our insurance policies to pay for it. Car insurance fraud is on the increase as gangs of people are driving around in cars actively looking for an accident. A typical scenario would find a motorist on a roundabout, when suddenly the car in front of him slams on its brakes, but he can’t tell, because the brake lights don’t work. He hits the car and has become the latest victim of a scam.
In this scenario, a driver, normally in an old car, will disconnect his brake lights, so the motorist behind can’t tell when he’s braking. When being followed around a roundabout, he slams on his brakes for no obvious reason, and the driver behind then crashes into him, causing damage to the cars involved and usually an injury to the driver and passengers, most commonly whiplash, and because it’s a rear end collision, the second driver, who’s really the victim of this crime, is assumed to be at fault. The first driver, and the passengers in the car (if any, but there nearly always is) – will then claim on the victim’s insurance. Witnesses, part of the same gang as the driver, will come forward to verify what happened. The gangs in question are forcing insurance companies to pay out for illegal claims for what they describe as…staged accidents, induced road traffic accidents, phantom passengers claims, fraudulent injury and special damage claims. And it does not matter if you have cheap car insurance or comprehensive, you can still be a victim.

It is hard to avoid this scam, but some advice would be to follow the rules of the road, and not follow the vehicle in front too closely. On roundabouts, that is not always feasible, so remain very alert; keep an eye on the vehicle in front. The occupants may turn to look at you or may even make a gesture just before the trap is sprung. This is a large, organised crime ring, and usually very professionally executed. If you suspect that the accident you are involved in is not genuine, leave it to your insurance company to investigate – they are eager to crack down on this particular type of fraud.