Cash For Crash Claims Harm Innocent Drivers

It might be getting to that time of year where you have to renew your car insurance

. You are a good driver, with no accidents and no claims to your name, but you find that your insurance bill has increased. Your premiums will now be taking into account the actions of a new wave of fraudsters.

The number of bogus claims has increased dramatically and such increases are claimed to be responsible for such increases.

There are a number of scams that are to blame for these added costs. One such fraud is nicknamed cash for crash, where groups of drivers stage road traffic accidents and then splitting the compensation claims between them-selves.

The AA has released a report today which indicates that the average comprehensive policy has increased by more than 30%. The report further warns that the cost will keep on increasing as these frauds become more and more prevalent.

The director of AA insurance, Simon Douglas remarked that he wont be surprised if, by the end of 2010, well have witnessed an unprecedented 50 per cent rise in just two years.

For those motorists that are struggling with the already high cost of petrol and car maintenance, this could not have come at a worst time.

The AA report further indicated that 33,000 fraudulent motor insurance claims were lodged, an definitive increase from the 28,000 recorded for the previous year.

Yet another fraud involves personal injury claims, which require the claimant to invent and fake injuries in order to receive compensation. This could includes whiplash compensation.

In most cases, the car is filled with passengers who claim for exaggerated injuries such as whiplash and head injuries.

Even the repair or replacement of a car can be a result of the staged road traffic accidents, leaving innocent drivers in a financial insurance mess.

The AA is concerned that such increases in insurance premiums could result in many motorists not paying for their insurance as they simply cannot afford it.

by: Antonia Torr

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