Cash for crash scams are on the increase. For businesses running commercial vehicles and fleets the rise of these types of incidents could adversely affect you, your employees and your business.
Allianz’s claims data finds that four in ten cash for crash accidents happen during the school run and rush hour. Staged accidents involving corporate and larger vehicles are on the increase, so business directors need to ensure that employees are well educated on how to deal with such incidents.
What is crash for cash?
‘Crash for cash’ scams have been in the news and are dramatically increasing. These scams are run by fraudsters who stage accidents, with innocent road users, to profit from fraudulent insurance claims. Not only does the scam affect insurance claims, but it affects the drivers of vehicles and can cause fatalities. As with many scams, the incidents are on the rise and criminals are becoming more professional in the way the crashes are staged.
How does crash for cash work?
Criminals are using a number of different ways for staging this type of incident, so it is important that you and your employees know the signs of this type of scam and can deal with it in the right way.
The most common incident is where fraudsters slam their brakes on at busy junctions and roundabouts, hoping that the driver behind won’t stop in time. Often the fraudsters disable their brake lights to make it harder for the vehicle behind to see they have applied their brakes suddenly.
Another type of incident involves the fraudster flashing their lights at a junction to let you out, then crashing into you deliberately as you pull out. The scam can often involve more than one vehicle where the fraudsters work in conjunction with other drivers in front of them.
Another variation of the incident is when fraudsters use a vehicle driven erratically in front of the fraudster’s vehicle, that then causes a car driven by another criminal to break violently in front of the victim, hoping that a victim doesn’t stop in time and leading to a rear-end collision.
There are also incidents of a ‘ghost accident’ which involves fraudsters submitting completely fabricated claims for accidents which never actually took place.
How can I tell if I have been a victim of a crash for cash scam?
There are warning signs for drivers that may indicate you are a victim or may be a target. These signs involve:
- The driver or their passengers seem calm and unphased after the collision.
- The driver or their passengers claim to have exaggerated injuries that are not aligned to the level of incident.
- The driver has pre-written insurance information to hand over to you.
You may be about to be targeted if you see:
- Cars in front of you travelling erratically by speeding up and slowing down without reason or vehicles driving unusually slowly.
- Drivers of vehicles (especially scooters, motorbikes and mopeds) paying particular attention to your vehicle behind them.
Tips to avoid being a victim of cash for crash
For your own safety and the safety of your employees, it is important to take the following steps:
- Whist driving always maintain a safe distance between you and the vehicles in front of you. Don’t tailgate and ensure you have adequate breaking distance.
- Manage distractions whilst driving. Avoiding using mobile phones or other devices or eating whilst driving to ensure you stay fully aware of what is happening around you.
- Look out for erratic driving in front of you. Both in terms of the vehicle directly in front of you but also the vehicle beyond the car in front of you.
- Ensure you or your employees always have a mobile phone in the vehicle to take down details of the incident and to take photos directly of the incident, the vehicles involved and the surrounding area (including CCTV cameras). If you don’t always carry a mobile phone or you run out of battery regularly, have a back up. Carry a pen and paper and maybe a disposable camera.
- Fit dash cams to all of your fleet and commercial vehicles that can collect evidence. These cameras can be fairly low cost and can be fitted both in the front and the rear of vehicles. Dash cam video footage can provide protection and resolve issues around liability and can often highlight ‘crash for cash scams’. Also, fit stickers to commercial vehicles saying the vehicle carries cameras.
- Consider fitting telematics technology in vehicles as well. Telematics records driver behaviour and vehicle location. Combine with dash cams it can help to avoid escalation of a situation and a claim.
Find out more about considerations when fitting dash cams into your commercial vehicles and fleet here. Harborough Portas customers can benefit from discounted prices on Road Angel dash cams.
What should I do if I am a victim of a cash for crash incident?
Here are some steps to take if you think you or your employees think they’ve been a victim of cash for crash scams.
- Stay calm, think clearly and, as with any accident, don't admit liability.
- Call emergency services if there are any injured parties immediately.
- Do not confront the other driver in any way, this may put you in danger.
- Do not attempt to photograph the driver of the other vehicle directly. However, if they are in any photographs you take of the vehicles and damage, it may be useful for police.
- Exchange details as legally required.
- Note as much information as possible about the vehicle including registration numbers of the direct vehicle involved and any other vehicles that may have been involved. Note information about the driver, number of passengers, any witnesses, and details of the collision.
- Gather all forms of evidence available including written evidence, photographic and video evidence. Look for things like CCTV or ring doorbells in the immediate area that may hold footage of the incident.
- Look for witnesses and ask them for their details if they are willing to give them.
- Make your insurance broker aware of the incident as soon as possible.
- Report the incident to the police – dial 999 if there is an emergency. If there is no emergency, then call 101 and report your suspicions and tell them all the details.
- Report the incident to the Insurance Fraud Bureau. They have a dedicated Cheatline on 0800 422 042. It's free, anonymous and completely confidential.
How can crash for cash affect me, my employees and my business?
Fraudsters can often net tens of thousands of pounds for criminals. The criminals will try and claim compensation for injuries, claims for injuries to passengers who were not even present in the vehicle, vehicle damage, replacement vehicles, loss of earnings along with other costs. Criminals often use bogus witnesses that are other fraudsters to make these claims.
These Incidents may cause serious injury to either you or your employees. In worst case scenarios some of these incidents have led to fatalities.
The impact may not only be physical but could affect the mental health of employees after the event. Ensure your business has help and procedures in place to support employees after such an incident. Employees may require time off sick to recover from any injuries or mental health impact of the incident.
This type of incident may impact your claims experience, causing a rise in insurance premiums.
You may well suffer loss of business and income due to vehicles being off the road or face costs of renting a replacement hire vehicle.
Summary
Unfortunately, cash for crash incidents are on the rise in the UK. The effects are widespread and can affect you, your employees and your business. These incidents can be extremely dangerous and they continue to contribute to the general increase in insurance premiums over the past few years.
At Harborough Portas we help our clients deal with such incidents and any subsequent claims. Installing dashcams can be a huge help in such incidents to help prove liability and avoid escalated claims. Our clients benefit from discounted rates on Road Angel dash cams.
For more help and advice contact Harborough Portas today.
