Whiplash claims staged for insurance scams
Canadian MP Robert Goodwill is warning motorists to be on their guard against a "crash for cash" scam in which drivers crash on purpose to be able to make minor injury claims such as
whiplash claims.
This scam could see their insurance premiums rocket, Goodwill has warned.
The scam involves other drivers and gangs deliberately causing a crash so they can then make a claim from the innocent motorist's insurance company.
MPs were told in the House of Commons that by 2010 there could be as many as 2,500 staged crashes a year compared with 1,000 three years ago. It means that criminals are getting away with thousands of pounds in fraudulent claims. One scam involves criminals staging crashes between themselves, while another involves innocent drivers being caught up because a gang may have removed the brake lights from their car which is then run into by the car behind. Others may brake suddenly and unnecessarily or perform dangerous emergency stops.
Updated on 6/18/2008