The North-West of England has been revealed as the worst region in the UK for fraudulent whiplash compensation claims.
Figures just released have revealed that drivers in the region are most likely to be the victims of a crash-for cash scam. The fraud involves scammers performing emergency stops – usually at roundabouts – without reason or warning. The victim then crashes into the back of the vehicle and is held liable for the accident. The scammer then puts in a claim against the victims insurance company for injuries they did not sustain, most commonly whiplash. The scam is costing innocent motorists millions and harming people who have genuine compensation claims.
Figures released have indicated that fraudulent motor insurance claims amount to a staggering £350 million annually. Every motorist ends up carrying this cost with an extra £44 on their premium.
Insurance companies are becoming increasingly better at stopping the scam. Firstly it has been noted that certain roundabouts are popular for the scam, including the Eden Point roundabout on the A34 in Stockport. By monitoring data they have identified scam sites across the country. Unfortunately, this has a knock-on effect of slowing down the process for genuine compensation claims. This is because all accidents at known scam sites are investigated fully by the insurance company’s anti-fraud team.