UK Motorists Crashing for Cash

CHESTER, England, July 13, 2011 -

• One in 20 motorists under 35 confess to having
  ‘staged‘ or invented an accident and
  claimed successfully
• 1.3 million of all motorists have or would consider staging
  a car accident to claim on their insurance

Recession-hit drivers in the UK are resorting to dangerous
measures to make extra cash, according to href="www.moneysupermarket.com/">moneysupermarket.com.
Research from Britain’s number one comparison site reveals one in
20 younger drivers admit to successfully staging or inventing a car
accident to claim on their
insurance.^[1]

The research also reveals that overall, 1.3 million motorists (4
per cent) are a dangerous threat to themselves and other road
users, admitting they have or would consider deliberately causing a
motor accident, or inventing one, to make a claim on their
insurance. Two per cent admit to having already successfully done
so. Londoners are the riskiest behind the wheel - 10 per
cent have or would consider committing motor fraud compared to
less than one per cent of those living in Wales.

The insurance industry separates this type of car insurance
fraud into three categories:

• ‘Staged‘ motor accidents; two vehicles
  deliberately knock into each other in order to claim on
  insurance.
• ‘Contrived‘ motor accidents; a fabricated
  claim for a motor incident that never took place.
• ‘Induced‘ motor accidents; a deliberate
  action by a motorist to force an innocent driver to crash into
  them, such as braking suddenly so they are hit from behind.

The research found that of those who had successfully invented
or deliberately caused a motor accident, nearly half (44 per cent)
were ‘Staged’, a quarter (24 per cent) were ‘contrived’, and eight
per cent were ‘Induced’.^[3]

Peter Harrison, car insurance expert at href="www.moneysupermarket.com/car-insurance/">moneysupermarket.com,
said: “We have all been affected by the recession in one way
or another, but crashing for cash is not only illegal but wilfully
endangers the lives of others. It seems Brits really are going a
step too far this time.

“According to the ABI, in 2009 over 2,000 dishonest insurance
claims worth more than £16 million were detected every
week.^[2] Our research reveals
there are many more motorists causing this type of fraud and
getting away with it. Organised motor fraud not only costs the
insurance industry, but risks the safety of innocent drivers,
passengers and pedestrians. In addition, fraudulent claims cause
insurers to increase premiums for honest motorists as they try to
recuperate their losses, an unnecessary addition to the spiralling
insurance premiums we are currently witnessing.

“Any motor insurance claim proved to involve an organised
accident will be considered as fraudulent by an insurer, and is
likely to have drastic, long-term affects on your motoring as a
consequence. If found guilty, an official “fraud mark” could be
added to your license; this will prompt your insurer to void
existing cover and probably refuse you cover in the future. In
addition, insurers are also likely to pass your details to the
police for prosecution.Regardless of how tempting it may seem to
get your hands on some extra cash, carrying out organised motor
fraud whether it is ’staged’, ‘contrived’ or ‘induced’, it really
isn’t worth the risk. After all, it could end up costing you more
in the long run.”

Notes to Editors

^[1]Opinium carried out a survey
of 2,030 UK adults aged 18+, 25^th - 27^th May
2011

According to the DFT, there are 33,481,604 (or 33.4) million
drivers in the UK: href="www.dft.gov.uk/pgr/statistics/datatablespublications/nts/driving-availability/nts0206.xls">
www.dft.gov.uk/pgr/statistics/datatablespublications/nts/driving-availability/nts0206.xls

4 per cent of people would consider, or have already, consider
inventing a motor accident or deliberately causing one to make a
claim on their motor insurance. 4 per cent of 33.4 million =
1,339,264 or 1.3 million people

^[2]
href="www.abi.org.uk/Media/Releases/2010/07/Bogus_Britain__insurers_expose_over_2300_fraudulent_claims_every_week.aspx">
www.abi.org.uk/Media/Releases/2010/07/Bogus_Britain__insurers_expose_over_2300_fraudulent_claims_every_week.aspx

^[3] N.B low base size.

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