According to a survey from DLG, two out five drivers (43%) fear they may become targets of intentional vehicle collisions or fake accidents designed to trigger insurance claims. The concern is notably higher in dense areas and cities, where incidents of cash-for-crash scams are common.
Crash for cash is a form of insurance fraud in which drivers and moped riders stage road traffic collisions to gain compensation. These collisions put drivers at risk and contribute to increased insurance premiums. A rise in “crash for cash” fraud has been seen in past years. According to City of London, over 4000 people were targeted from June 2021 to July 2024, leading to fraudulent insurance claims worth an estimated total of £70 million.
Some reports indicate that organised crimes rings accounted for 40% of motor insurance fraud in 2024 using increasingly sophisticated schemes, placing motorists and insurers on high alert as fraud levels escalate.
Organised criminal gangs are often behind these incidents and will make fake or exaggerated insurance claims for storage and replacement moped costs. In some cases, fraudsters will cause a crash and try to intimidate victims into handing over money at the scene.
One of many reasons for the spike in insurance premiums are the number of increased fraud claims. According to UK government In 2023, insurance companies detected 84,400 dishonest insurance claims valued at almost £1.1 billion. To protect honest customers and deter fraud the insurance companies are being forced to invest significant resources in the forensic investigation of and detection of fraudulent claims.
It’s not just the insurance companies who pay the price – insurance fraud pushes the price of premiums up for all drivers and fleet owners.
“It increases the cost of premiums for honest customers, while fraudsters who sell fake car insurance or deliberately cause road traffic collisions to claim compensation put motorists at risk.” – Temporary Assistant Commissioner Nik Adams, from the City of London
Cash-for-crash fraud is not a new issue. Over a decade ago, a gang of 19 offenders was arrested, and authorities seized fraudulent collision and insurance claim documents worth £1.1 million.
In December 2024, 3 people were found guilty for an unsuccessful “crash for cash” plot, which could have cost insurance company up to £102,827.
Operating a fleet in the UK already involves multiple challenges, including compliance, regulations, and other requirements. With the increasing number of crash-for-cash fraudsters, new challenges have arisen, heightening concerns for fleet operators.
At times larger fleet operators are known to accept and offer compensation to fraudsters to avoid the legal costs, challenges of proving fraud, potential damage to brand reputation, and increases in insurance premiums.
From a driver’s perspective, the consequences can be severe. Drivers may lose their jobs, face fines or have their licenses revoked due to a lack of evidence, leading to financial instability and unemployment.
Avoid becoming a victim of crash-for-cash
The last thing a fleet operator wants is to have their licence revoked or to face a Traffic Commissioner’s enquiry because of a fraud claim raised against their fleet.
Many car accidents aren’t clear-cut. If it’s your word against theirs, cameras in the vehicle can help to resolve the dispute and if the other party was at fault, you may not have to pay your excess, or if you’ve already paid, your excess may be reimbursed.
According to a survey from Go compare car Insurance, 48% of those taking said they would be happy to have a dashcam installed in their vehicle. The main reason given by those who wouldn’t use a dashcam is that they would feel like they were being watched by ‘Big Brother’ insurers (44%) and that the camera would be an invasion of their privacy (39%).
If you suspect you’ve been a victim of a crash for cash fraud, dash cam evidence could identify a scam and prevent it from happening to others. For years police forces have used dash cams in their vehicles, and the footage they record is often used as evidence when prosecuting bad or dangerous drivers. The evidence could also help protect your no-claims discount (NCD).
SME protection against fraud claims
As a small and medium-sized business the costs of CCTV systems may seem an unnecessary expenditure. ACSS is able to offer solutions to fit most operators budgets and specific requirements from simple dashcams to multi camera live view systems. What is almost always true is that in the event of an incident where fault is at dispute and insurance claims filed vehicle CCTV proves its value very quickly. Or in an industry where speed to evidence (FNOL) can effectively manage insurance risk and premiums remote download of footage can make all the difference.
Live CCTV Monitoring: Live surveillance systems, combined with features like automatic event alerts, can notify fleet operators in real time, enabling prompt action. Even if cameras are damaged, recordings can be stored on a cloud system for later review.