From This is Money:
It involves criminals deliberately staging road accidents, usually by slamming on their brakes so an innocent driver behind has no chance of avoiding a collision.
The fraudster then claims against the other driver’s insurance company for damage and injuries such as whiplash.
Police have warned drivers to be vigilant as the practice – often part of a well-organised criminal network – spreads at an alarming rate and puts lives at risk. Experts say it is costing the insurance industry at least £200m a year.
Two high-profile operations, involving both police and investigators from the Insurance Fraud Bureau, recently smashed criminal gangs in London, Hertfordshire and Bedfordshire. In one case assets worth more than £1m were seized, three ringleaders were jailed for up to two and half years and nine others were given suspended sentences.
Overall, motor insurance fraud now costs an estimated £1.6bn a year. The extra premiums needed to pay for it add £50 to t…