A warning has been issued to motorists regarding a new insurance scam, dubbed ‘flash for cash’, whereby rogue drivers bait other motorists at junctions by flashing their headlights encouraging them to pull out. Upon pulling out of the junction the unsuspecting victim is then crashed into on purpose with the perpetrator then denying they flashed in order to claim on the insurance.
In a statement from Neil Thomas, Director of the APU, he said: “It is yet another example of how criminal gangs are becoming more sophisticated and attempting to stay one step ahead of suspicion.â€
He added: “By appearing to offer the right of way, the criminal simply continues his journey into a collision, holding the victim at fault for turning across them which, of course, cannot be denied under law.â€
This new scam is considered a variation on the current ‘crash for cash’ con, whereby organised gangs use several vehicles to stop suddenly in the hope of creating a rear end collision.
The Insurance Fraud Bureau (IFB) estimates that car crash scams cost £392 million per year, with gangs pocketing around £1.7 million.
According to the IFB, 14% of personal injury claims are allegedly linked to ‘crash for cash’ scams.
In a statement from Detective Inspector David Hindmarsh, of Metropolitan Police Traffic Command, he said: “The motor industry insurance scams could add an estimated £50 to £100 to each policyholder’s annual premium. The organised gangs now use claims management front companies to ‘milk’ the system.â€
He continued: “The issue with this new type of collision is that the police would not be called, and there would be no personal injury. Organised criminal groups can set up claim management companies with the sole purpose of defrauding the industry. Insurance costs would then be claimed for recovery of the damaged vehicle, storage while awaiting repairs and car rental during the period.â€
In a statement from Otto Thoresen, the Director General of the Association of British Insurers (ABI), he said: “Across the whole insurance industry around 380 fraudulent claims are uncovered daily, worth nearly £1bn a year. Another £2bn in fraudulent insurance claims are estimated to be made annually across the sector.â€
Detective Inspector Hindmarsh concluded: “Motorists at junctions should take the utmost care when a driver offers you the opportunity to join the traffic flow. The advice would be if someone flashes you, make sure they are either stopped or don’t risk pulling out. Always make sure it is safe to move before you do so.â€
Tags: Car Insurance, Driving Insurance, Young Person Insurance
