“Crash for Cash” leads to higher van insurance prices

Recent years have seen an increase in the amount of fraudulent van insurance claims as the numbers of “crash for cash” cases rise. “Crash for cash” is the term used when a criminal causes an accident and makes it look like another driver’s fault. One of the most common ways of doing this is disconnecting the brake lights on a vehicle and stopping suddenly.

Surprisingly, many of those involved are respected members of society and hold professional jobs, yet work in networks with other fraudsters to ensure that the claims are successful. This practice is now costing the UK insurance industry an estimated 200 million pounds a year.

Northern England is one of the places worst affected by the problem of “crash for cash”, with Bradford seeing the highest number of cases in the UK, according to Insurance Fraud Bureau. Due to the significant rise in cases over recent years, the National Fraud Authority is working closely with Insurance Fraud Bureau to try and bring an end to the phenomenon.

Bernard Lever, the judge in a recent “crash for cash” court case highlighted the cost of the fraud for the general public, claiming that it adds around £49 to every driver’s insurance premium.

It is issues such as this that contribute to the growing costs of van insurance, whilst also making it more important than ever that van insurance is in place, to cover all eventualities.

Many van drivers who choose to stay with their current van insurance provider out of convenience, are often paying premiums that are far higher than they need to be. These days it is incredibly easy to search the market for cheap van insurance quotes, especially with the rise of van insurance comparison sites, such as Van Compare. Doing so will help keep van insurance costs as low as possible while making sure a premium is in place that covers things like “crash for cash” incidents.