Insurance scams: Do you live in a ‘crash for cash’ black-spot?

‘Crash for cash’ swindles are driving up the costs of car insurance for motorists living in some neighbourhoods.

According to the Insurance Fraud Bureau (IFB), ‘crash for cash’ fraudsters stage about 30,000 accidents a year which adds £44 to the insurance costs of every driver in the country.

Generally, the gangs will bump in to the back of a car driven by an innocent motorist. The crooks then make over-inflated or fraudulent claims on their car insurance for damage or injuries.

Britain’s worst ‘crash for cash’ black-spot is Birmingham, followed by Liverpool and Blackburn’s BB1 postcode. Many motorists cannot arrange car insurance at any price in these areas, and those that can are paying thousands above the national average.

Drivers face 400% increase in car insurance costs

Blackburn Insurance Brokers claim insurance companies pay out 20% more in motor insurance claims than is collected in premiums for the BB1 postcode area.

Local newspapers report some motorists are facing hikes of up to 400% for cover despite being: married, in their 30s and having years of no-claims.

One driver and his wife wanting to insure a modest Renault Megane were quoted £1,500 for cover… up from £395 the previous year despite trading down from a larger Renault Scenic. 

One insurance broker alleges an 18-year-old driver living in BB1 driving a 1.1litre Citroen Saxo can end up with a car insurance quote of £4,000… and many insurance companies won’t even make an offer of cover.

The IFB has 24 active joint antifraud operations with 15 police forces involving scams of £41 million. Since July 2006, IFB intelligence has led to 415 arrests and 89 convictions for insurance fraud.

Here’s a list of the worst 20 postcodes for crash for cash scams:

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