Details have emerged from the FSA about the startling figures for car crash insurance fraud in the UK.
During 2009 the FSA have estimated that a total of more than £350 million was taken from the system by means of false claims. The way that this is being done is by crashing into the unsuspecting, and it’s on the rise.
The average insurance premium is up by £44 for everyone in the country who has a policy. That’s a 5% mean increase on a policy for everyone, and the FSA are warning this could increase in 2010.
There were around 30,000 staged accidents last year, and the financial services authority say it will be hard not only to monitor the increasing statistics, but also to stop it happening. The only way they have been able to prosecute so far is when there have been multiple accidents staged by groups or gangs of fraudsters.
John Bee Ltd, an accident repair centre in Sheffield, has seen first hand instances of the now popular insurance theft procedure. Manager Anton Fantozzi notes people being involved who were helpless third parties: “We have seen a few instances now where people have been flashed to leave a junction, then the offender will speed up to cause an accident. Technically the crash will be the fault of the third party, because flashing lights is not recognised in the Highway Code”.
The North of England has seen the majority of car crash insurance scams to date, but Metropolitan police have now noted an increase in the number of cases in the Capital.