LV= warns that 'crash for cash' personal injury claims have increased by 60%

Newly released data from LV=GI found that personal injury claims in Scotland linked to 'crash for cash' incidents saw a 60% rise between 2021 and 2022.

Related topics:  crash for cash,  data
Protection Reporter
24th February 2023
Car Crash
"Deliberately slamming on brakes to induce a collision is an extremely dangerous crime."
- Matt Crabtree, LV=GI head of fraud strategy

'Crash for cash' claims have been described as a "menace" by the Association of British Insurers (ABI) with fraudulent claims impacting motor premiums paid by honest motorists.

According to LV=GI, this rise in incidents, including individuals deliberately slamming their car brakes to ensure the vehicle behind crashes into them, correlates with the introduction of the UK government’s whiplash reform last year, considering that these new rules apply to every UK region apart from Scotland. Consequently, the M6 route into Scotland has become a hotspot for 'crash for cash' claims. 

However, despite this rise in cases, there is still a lack of 'crash for cash' awareness among UK consumers, with YouGov data highlighting that less than half (47%) of residents in Scotland are familiar with this form of fraud.

LV=GI are currently investigating ten organised fraud cases with an estimated value of £2m, and have identified other 'crash for cash' hot spots, including the A70, A74, A75, A76, and M74.

According to the insurer, there have also been cases of multiple accidents in the same vehicles, reported under  different identities. These include one case where a car was found to have caused two accidents in less than a fornight. 

Commenting on these findings, Matt Crabtree, LV=GI head of fraud strategy, has said:

"Insurance fraud is evolving all the time, with fraudsters continuing to find ways to target innocent motorists for their own financial gain. Deliberately slamming on brakes to induce a collision is an extremely dangerous crime.

"It can have severe consequences to the victims including life-changing injuries and fatalities, which is why we’re committed to helping raise awareness of the issue and tackle this at the source with local police forces."

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