Image from dailymail.co.uk
Image from dailymail.co.uk

One reputed car insurance company reported that there is one single reason why there is a continuous rise of car accident claims and this is “crash for cash”.  This is a common scam happening nowadays where a person will deliberately cause a minor car crash to occur so he can claim for a personal injury claim. The reason will be allegedly whiplash.

The modus operandi of some drivers is to unexpectedly break at the front of an innocent driver. This results to a crash of the drivers and passengers into the car’s rear. And because whiplash can be very hard to identify, scammers often end up going home with an easy pay-out after complaining of whiplash.

On the other hand, the unsuspecting driver will also file for an accident claim for treatment of a real injury.  Unfortunately, this will still result to increased insurance premiums on his part.

The “crash for cash” incidents have increased by more than fifty percent and this is expected to grow over time.

It is also important to note that the numbers of claims for crash for cash in one area may result to a spike of insurance premium in such location. Fraudulent road accident claims in Birmingham has already totaled to £4.7m and is expected to grow more over time.

Government authorities and insurance companies are finding ways to address fraudulent whiplash claims accordingly before the situation gets worse and all drivers will suffer the consequence of paying higher insurance premiums.

To resolve the issue, insurance companies suggest to the government to remove the cash compensation for all minor whiplash injuries claim. The best option is treatment of the injured part and offering needed rehabilitation to the victim.

“The best way to combat this fraud is to come up with a deterrent that will work out well. This is on top of stronger sentences and more prosecutions. Cash incentive must be removed in a minor whiplash claims which are often done by serial crash for cash swindlers. I don’t think crash for cash will still persist when no money is already involved on it”, Tom Gardiner; claims fraud head in one of the insurance company said.

Another option to stop “crash for cash” scammers is by employing dash cams; an in- car camera to cut the numbers of crash for cash claims. This can record accidents as they occur, decreasing car accident claims and insurance premiums at the same time.