A steady alarming rise in Whiplash claims is the reason why car insurance costs are on an upwards trend. The normal cover cost for motorists is currently at its highest peak since March last year (2013), this is according to the latest index of MoneySupermarket.
The research showed that premiums have gone up by 14% since they fell on an all-time low in February 2014.
The head of Claims for Aviva UK and Ireland (Tom Gardiner) was quoted as saying that Crash for Crash is no-longer a problem financially only; it is a serious social problem. This is the only type of Insurance fraud that actually exposes the public to serious injury.
It is now known that deliberate accidents are on the rise and innocent motorists are being put at risk by drivers who slam their brakes deliberately so that they can get money for accident compensation.
In 2013 Aviva discovered that accidents went up by 51% and they continue to increase as the months drift by. Part of the reason why accidents of this caliber are going up is because fraudsters are advancing from minimal hot spot locations and are now covering a wider area.
The Extensive Whiplash Coverage
The extensive research by Aviva Insurance proves that London and Birmingham are the crash to cash locations of choice. Previously, the North West, particularly Manchester had been the main location for crash for cash movement.
That said however, the insurer admits that several successful prosecutions and operations in this location including the expansion of organized-fraud in other locations of the United Kingdom is changing this picture.
Fraudulent car accidents that were detected in the Birmingham area according to data shared by Aviva totaled to a figure higher than £4.7million in just the month of August 2014. This has made premiums in this jurisdiction shoot upwards.
To stem the rather faster growth of Crash for cash, Aviva is now requesting the British government to consider treating trifle Whiplash injuries through rehabilitation as opposed to cash compensation.
By choosing this path, there is wide spread belief amongst industry players that motivation for fraudsters to cause accidents deliberately to make claims will be eliminated and motorists that are innocent will keep the policies low for the clients.
Tom Gardiner was quick to add that fraud starts with the placement of an actual deterrent. Which should be followed by a higher number of prosecutions and stretched/harsh sentences. There is need for the removal of financial incentive for individuals claiming minor Whiplash claims such as the claims made by sequential crash for cash impostors.
The director of the RAC Foundation Professor Stephen Glaister said how worrying it is that these kinds of scams are now an ongoing criminal activity for raking in big money.
Figures from industry players shared also showed how fraudulent car insurance is made every 9 minutes which is a worrying trend as crash for cash impostors risk their life and limb for financial gain.