From This is Money:
These staged accidents, where an innocent driver is forced to smash into a vehicle used by fraudsters, are a frightening menace.
By padding out claims with fictitious passengers, dubious injuries and fake repair costs, each shunt can be inflated into a lucrative pay day – as much as £50,000 in some cases.
While the chances of being involved in a staged accident are still low, insurers say it is a growing problem. Susan Jones, head of the investigations unit at the Insurance Fraud Bureau, says: ‘We believe there are about 30,000 incidents reported to insurers every year that relate to staged, invented or induced accidents.’
As Financial Mail reported last month, bogus claims add about £40 to the annual insurance bill of the typical motorist.
There have been successes. The Insurance Fraud Bureau (IFB) reports an 11% reduction in the estimated number of incidents over the past two years. But drivers can do their bit to fight back. Insurers are trying to raise awarenes…