14 February 2007
Fraudulent and "inflated" claims by dishonest drivers are costing the insurance industry £1.5 billion each year, forcing firms to raise their prices, according to recent research from Royal & Sun Alliance (RSA).
The majority of false claims came from "staged accidents" where a motorist deliberately provokes a motor accident to make a claim for the damage and while 41% of those polled had never heard of the practice, R&SA's claim that these incidents are growing.
Drivers in Wales were least alert to the threat, with 55% of them having never heard of deliberate accidents. Half of the capital's population said they were unaware of the practice, compared to only a third of those in north-west England.
"Staged accidents are on the rise and are potentially extremely dangerous," said R&SA's counter-fraud manager and ex-Metropolitan Police detective superintendent John Beadle.
He continued to explain that not only were these fraudulent claims costing honest motorists millions of pounds each year, they also put innocent motorists in danger.
"There are usually some tell-tale signs that you have been involved in a fraudulent collision. Motorists should pay extra attention to people braking suddenly in front of them for no apparent reason or otherwise driving erratically," he added.
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