Until recently, the most common way that fraudsters operated was simply by lying to get cheaper coverage. However, there is now much more perilous vehicle insurance fraud on the streets, with people inducing crashes to invent a claim for financial gain.

Insurance fraud affects everyone. The Insurance Fraud Bureau (IFB) and the Association of British Insurers (ABI) agree that insurance fraud costs an extra £50 annually for everyone in the UK with car insurance.

Insurance fraud in 2013 cost approximately £1.3bn, the highest it’s ever been. It is also estimated that 1 in 7 personal injury claims is the product of an intentional accident.

If you’re a driver, you are at risk. Here are 5 ways you can prevent yourself from becoming a victim of insurance fraud.

1. Keep a Good Distance Between You and The Car in Front

One of the primary methods of on-road insurance fraud in the UK is a phenomenon known as “Crash for Cash,” in which fraudsters induce an accident in which the third party appears liable in order to claim. Last year, “Crash for Cash” contributed a staggering £392m worth of fraud to the total alone.

“C4C fraudsters” claim by braking too suddenly for the car behind them to properly react, in some cases going as far as cutting their brake lights to heighten likelihood of a collision.

By keeping a good distance between you and the car ahead, you give yourself enough time to brake in the event that they come to an abrupt halt.

2. Be Extra Careful at Junctions

Junctions are dangerous because often fraudsters can begin to pull out onto a clear road, then stop suddenly, later claiming they were stopping because of a passing car. 

You should also be wary of cars indicating to turn into a junction. Don’t take for granted that these vehicles will actually turn; wait until they are off the main road before pulling out. Otherwise, you risk being a victim of a fraudulent claim.

3. Don’t Trust Drivers Beckoning You Out With Their Lights

In the majority of cases, a car flashing you is a polite gesture. However, a relatively new fraudulent scheme, “Flash for Cash,” allows fraudsters to uses this presumption to their advantage. These drivers will flash a car out of a junction, yet precede to drive as normal and induce a crash.

Use your own common sense. Only exit a junction when you are sure it is safe to do so.

4. Invest in a Dashboard Camera

A lot of drivers are now using dashboard cameras to cover them in the event of a collision. These cameras are installed inside the car and operate by constantly overwriting footage until a crash. This footage can then be given to the police and insurers in the event of a fraudulent claim.

5. If You’re a Victim, Stay Calm

Sometimes, you might take every precaution and still fall victim. The fraudsters are good at what they do. Here are a few things you should remember on the scene:

•    Do not admit liability for the accident.
•    Do not confront a potential fraudster with your suspicions. Get in touch with the police.
•    Take written notes of what happened and what was said while it’s fresh in your memory.
•    Take pictures of the crash as discretely as you can.
•    Contact your insurer as soon as possible.

Drivers that take heed of this advice can help make the roads a safer place for everyone. Hopefully, we can work together to eventually write off insurance fraud once and for all.

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