Staged Car Accident Scam

You're on a roundabout, when suddenly the car in front of you slams on its brakes - but you can't tell, because the brake lights don't work. You hit the car…but have you actually been the victim of a scam?

How It Works

The key to this scam is that it's difficult to prove it's a scam by the insurance companies, and that the police generally will not investigate or prosecute unless presented with strong evidence by those insurance companies. It first came to light in early 2005, with a spate of similar accidents in West Yorkshire, although the idea is thought to have originated in the North West.

A driver, usually in an old car, disconnects his brake lights, so you can't tell when he's braking. When being followed around a roundabout, he slams on his brakes for no obvious reason, and the driver behind then ploughs into them, causing damage to the cars involved and usuaully a injury to the first driver and passengers, more commonly whiplash.

Because it's a rear-end collision, the second driver, who's really the victim of this heavily organised crime, is assumed to be at fault. The first driver - and the passengers in the car (if any) - claim on the victim's insurance. Witnesses, part of the same gang as the driver, will come forward to verify what happened.

The gangs behind this often own garages and car hire firms. A minor crash can produce a £20,000 or £30,000 claim. Insurers believe there could be as many as 10,000 induced accidents a year.

It goes without saying that staging an accident this way is not only illegal, but also highly dangerous, and can easily cause serious injury or even death. To the insurance industry it's part of the greater sense of insurance fraud that costs £1.5 billion a year, and adds an average of £50 to your car insurance premium.

How To Avoid The Scam

The main way to avoid this scam is to follow the rules of the road, and not follow another vehicle too closely. In practical terms, especially on roundabouts, that's not always feasible. So remain very alert. Keep an eye on the vehicle in front. The occupants may turn to look at you or may even make a gesture just before the trap is sprung.

Staged by professionals, it's truthfully not always possible to avoid this, unfortunately.

What To Do If You Think You've Been A Victim

• As with any accident, exchange details with the other driver. If there's been a possible injury, inform the police.
• Have the other driver write down his version of events.
• Write down your own version of the events, including descriptions of the people in the other vehicle - their sex, what they were wearing, everything you can.
• When you contact your insurance company, tell them you believe you were the victim of a scam. The insurance industry has set up the Insurance Fraud Bureau to share intelligence on suspicious claims.

Remember, this is a large, organised crime, and usually very professionally executed. If you suspect that the accident is not genuine, leave it to your insurance company to investigate. They're eager to crack down on this particular type of fraud.