Crash-for-cash insurance fraud is pushing more taxi drivers to ‘protect their businesses’ says MP
Crash-for-cash insurance fraud is becoming an increasing threat to taxi drivers, according to MP Alison Thewliss.
This criminal scheme involves fraudsters intentionally causing road accidents to make fraudulent insurance claims. Such scams often result in exaggerated or completely fabricated claims for vehicle damage, personal injury, and associated costs.
During a recent parliamentary debate on the topic, Thewliss highlighted the vulnerability of taxi drivers to these scams. "Taxi drivers can particularly fall victim to this kind of scam, which can take their business off the road. They are now obliged to have dashcams, both front and rear, in their vehicles. It would be useful to hear how many people have had dashcams installed to deal with this kind of scenario," she stated.
Alex Norris MP emphasised the severe impact on drivers’ livelihoods. “Being off the road or having issues relating to insurance or their licence is significant for them—this is their livelihood—so I can understand why they take the decision to record to protect their businesses. Those who seek to scam are pushing well-meaning, law-abiding citizens into that type of behaviour every day,” Norris said.
There are several different methods used when it comes to Crash-for-Cash fraud. These include:
1. Staged Accidents: Fraudsters create a collision, often by sudden braking, causing the car behind to crash into them or orchestrating multi-vehicle pile-ups.
2. Induced Accidents: Scammers manipulate situations to make accidents appear as the innocent driver’s fault, such as waving a car into traffic and then crashing into it or overtaking and braking sharply.
3. Ghost Accidents: Entirely fictional accidents are fabricated, leading to claims for non-existent damages and injuries.
Fraud of this type inflates insurance premiums for honest policyholders, costing the insurance industry millions annually. There are also serious safety risks involved when fraudsters deliberately initiate an accident, potentially causing severe injuries.
As a result, taxi drivers are increasingly turning to dashcams to document incidents and protect themselves from fraudulent claims. For those drivers preventive measure not only aids in safeguarding their livelihoods but also helps in deterring potential fraudsters.
