Crash fraud driving up cost of car insurance

YOUNG drivers are increasingly prepared to stage motor accidents in order to claim on their insurance, according to figures published as insurers warn that such fraud continues to drive up premiums.

Research by moneysupermarket.com, out today, found that 15 per cent of motorists less than 35 years old would consider staging an accident to claim on their insurance, with one in 20 having already done so. Staged accidents typically involve two vehicles deliberately bumping into each other in order to claim on insurance. There has also been a rise in contrived accidents - where motorists claim for incidents that didn't actually take place - and induced collisions, where a driver makes a deliberate action, such as sudden braking, to force an innocent motorist to crash into them.

Steve Sweeney, head of car insurance at moneysupermarket.com, suggested the trend was indicative of desperate measures in desperate times. "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. Our research reveals there are 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."