Staged accident rates skyrocketing says insurer

Research has indicated that a large percentage of car accident claims may be the result of fraudulently staged accidents.

Insurer LV= has discovered that over the past two years more than one out of every twenty injury claims that their customers have submitted could have been the result of fraudulent activity.  The most commonly reported form of entrapment by fraudsters was thought to be “rear-ending.”  Fraudsters wait for motorists to pull in behind them before stopping suddenly short, which will then cause the witless victim to collide and become liable for the accident.  The fraudster will then sometimes claim whiplash-like injuries.

The report indicated the likelihood of some other popular fraudster tactics.  17 per cent of the time criminals would  sideswipe other cars, according to LV=.  Additionally 24 per cent of fraudulent claims originate from criminals crashing their vehicles into the car of another driver after signalling them to merge into traffic ahead of them.

Additionally nearly one out of every four insurance policy holders queried by the poll felt that unscrupulous drivers had victimised them by exaggerating their personal injury claim in order to gain financially.

Out of these fraud victims, 37 per cent of them reported the other driver making injury claims despite being clearly unharmed.  23 per cent stated that the fraud perpetrator tried to pass off pre-existing vehicle damage as something that happened during the accident.

Similarly, several stated that after the other party failed to tell the truth regarding the circumstances of the accident, the victims ended up catching the blame.  Others reported that the other driver claimed to have had a passenger when they in fact did not; this phantom passenger was used to inflate the fraudster’s compensation claim.

More than 33 per cent of drivers surveyed in the report found themselves making payments of £2,000 or more for fraudulent claims.

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