Birmingham remains the UK’s crash for cash capital Aviva, the UK’s leading insurer, detected more than 3,000 organised crash for cash claimants last year – or one every three hours – with one-in-four of these claims occurring in Birmingham.
The number of induced accidents (where fraudsters deliberately target innocent motorists to cause accidents in order to claim whiplash compensation) remained worryingly close to 2014’s record levels, dropping just 2% in 2015, according to figures from Aviva.
Conversely, the number of “staged” (when two damaged cars are brought together to make it look like an accident) and bogus accidents detected by Aviva fell by 40%, as tougher fraud prevention tools at the point of sale have stopped fraudsters accessing Aviva’s products.
Motor fraud remains the largest source of fraud Aviva detects, representing 60% of all claims fraud with a value of £58m. One-in-nine whiplash claims submitted to Aviva is tainted by fraud, and Aviva has more than 17,000 suspicious whiplash claims under investigation, with 4,000 motor injury claims linked to known fraud rings.
Tom Gardiner, Head of Fraud, Aviva, said, “We remain very concerned that fraudsters continue to put their own greed ahead of innocent motorists’ safety. Our figures show induced accidents now account for nearly half of all organised motor fraud we detect.
“Crash for cash does not just push up premiums for genuine customers, it puts innocent motorists at risk. It is also a significant drain on scarce public resources such as ambulance, police and A&E time, all of which are wasted on these entirely bogus claims. The number of whiplash claims is a problem unique to the UK and needs urgent reform.
“We support the proposals outlined by the Chancellor in the Autumn Statement, which included Aviva’s call for removing compensation from minor, short-term injuries. We believe this will end the gravy train for fraudsters, and we have pledged to pass 100% of the savings from the reforms on to our customers.”
Regional Hotspots
Birmingham cemented its position as the nation’s crash for cash capital by increasing its share of these claims from 19% in 2014 to 25% last year. In fact, Aviva detected more induced accidents in Birmingham than the rest of the ‘Top 10’ locations combined.
Top 10 locations for induced accidents in 2015:
| 2015 Top 10 Crash for Cash Locations | 2014 rank |
| 1. Birmingham | 1st |
| 2. North London | 3rd |
| 3. East London | New entrant |
| 4. Leeds | 5th |
| 5. Harrow | 7th |
| 6. North West London | 8th |
| 7. Bradford | 9th |
| 8. Luton | 2nd |
| 9. Coventry | New entrant |
| 10. Oldham | New entrant |
NB: Manchester, Slough and Uxbridge featured in Aviva’s 2014 Top 10 hotspots table, but have dropped out of the top 10 areas for crash for cash in 2015.
Geographic ‘lowlights’
Elsewhere, the notable changes to the Top 10 were the rapid growth of crash for cash in East London, making it the third worst area in the UK (it did not feature in the top 10 locations in 2014) and the absence of Manchester and Slough, both of which featured in Aviva’s 2014 table. Manchester has long been associated with crash for cash, and its absence is good news for local motorists.
Aviva has analysed crash for cash volumes down to postcode level, revealing granular detail on the UK’s most affected areas, including a number of new locations which could point towards a pattern of migration for fraudsters.
The worst postcode in the country for induced accidents is B11, which, taken on its own, would rank as the third worst city in the UK for crash for cash, highlighting how concentrated the problem is in some parts of Birmingham. In fact, the top eight postcodes for crash for cash are all Birmingham postcodes. But Aviva’s detailed postcode examination also found problem pockets in areas not normally identified with crash for cash.
For example, WR5 (Worcester), CT9 (Margate) and LE3 (Leicester) all feature in the top postcodes for crash for cash. This could indicate that the problem is moving to new areas, and shows that crash for cash is not confined to merely a handful of locations.
Tom Gardiner continued, “Induced accidents remain a serious concern for all road users. However, as our figures show, we are getting better at detecting, declining and prosecuting these claims – but urgent reform is needed to remove the root cause of the problem, which is easy access to compensation and profits.
“We urge motorists to remain alert to induced accidents, especially in those areas where we know this is a problem.”
Ends
Enquiries:
If you are a journalist and would like further information, please contact:
Erik Nelson | Aviva Press Office | 01603 682264 | 07989 427086 | erik.nelson@aviva.com
Notes to editors:
Case study link:
A video of an unusual crash for cash incident can be found on this link. The video is available to download. Details of the case study, including the claimant’s prosecution, appear beneath the video. This is the link for the video/case study: https://vimeo.com/159775488
Members of the public can join the fight against insurance fraud by reporting what they know to the Cheatline. Powered by Crimestoppers, the Cheatline is a free service that enables members of the public to anonymously report information or suspicions about insurance fraud. All information provided to the
Cheatline is treated in the strictest confidence.
Cheatline is on 0800 422 0421, or online at www.insurancefraudbureau.org/cheatline.
Motorist Advice:
How to minimise the risk of being targeted by the cash for crash fraudsters:
- Stay alert: Pay attention to your driving and the cars/traffic around you
- Keep your distance: Keep a safe distance between your vehicle and the one in front.
- Roundabouts and slip roads: fraudsters target roundabouts and slip roads to induce accidents; be especially vigilant in these areas, allowing plenty of space
- Two cars ahead: there are frequently two cars involved in inducing an accident – the car directly in front and the car in front of that car as well. Both may drive erratically. Allow plenty of space between you and the two cars in front.
- Check the brake lights: A common trait in many vehicles involved in ‘crash for cash’ is failure of the vehicle’s brake lights. If you notice the car in front brakes and their lights don’t work, remain cautious, allow extra space between you and the vehicle, and perhaps distance your car from theirs.
- Warning signs: Is the car in front moving particularly slowly or is it slowing down and speeding up for no apparent reason?
- Driver Behaviour: If the driver in front is focusing on the back of the vehicle, that could be a sign they are looking for an opportunity to induce an accident
- Passenger Behaviour: Are the passengers in the vehicle in front turning around and looking at you for no reason? They may be looking for a chance to induce an accident.
- Collision Damage: Does the car in front look like it has been in other accidents – especially showing damage to its rear?
What to do if you are in an accident and are suspicious it may be fraudulent:
- Stay calm. Don’t argue with the driver of the other vehicle and/or their passengers.
- Call the Police immediately while you are still at the scene of the accident, inform them you suspect the accident is a cash for crash scam and ask them to attend the scene
- Don’t admit liability to the other driver, passenger or anyone else that appears to be connected to them at the scene of the accident. Don’t agree to liability in writing, either.
- Capture as much information as possible at the scene:
- the make, model and registration number of the other vehicle
- the time, date, location and weather conditions at the time of the accident
- the full name, address, date of birth and gender of the driver and passengers
- the number of passengers in the other vehicle, including where they were sat in the vehicle immediately after the accident
- take pictures or video, capturing any damage (or lack thereof) to the other vehicle and the scene of the accident
- whether the driver of the other vehicle or any of their passengers are complaining of being injured and also if no one is complaining of being injured
- was the driver reading from a document when dealing with you? Were they overly prepared – did they have a document with their details already recorded?
- how the other vehicle left the scene of the accident (e.g. driven or towed away). If towed or transported away, make a note of the vehicle and registration number of the vehicle that took the car away, including whether it displayed any business name
- the names and addresses of any independent witnesses
- Contact your insurer immediately after the accident to advise them of your suspicions and to provide them with all the information you have recorded. Keep a record of the information you supply to your insurer in case it is needed in the future.
About Aviva:
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