Car insurance scam crackdown begins

A crackdown is to begin to tackle criminals who stage road accidents so they receive a pay out on their car insurance, it has been reported.

The Insurance Fraud Bureau, a new company-funded investigative body, believes that money gained by the "crash for cash" gangs is linked with other crimes and countries associated with Islamic extremism.

A first court case was recently won by the company, convicting a gang who had been paid out around £250,000 in dishonest claims.

According to the Financial Times, Sue Jones, head of the bureau, said in an interview that the scams were biggest systematic fraud problem facing car insurance companies and that her company was to target other such gangs.

She added: "This is not just a crime where greedy people are lining their own pockets and driving around in flash cars and buying nice houses. It's the more sinister uses to which the money is being put."

And with these scams increasing the number of car insurance claims being made, cheap car insurance may prove difficult to find.

Admiral recently said that record high car insurance quotes are a "real prospect".

Insurance that puts you in control. eCar Insurance is open 24 hours a day, 7 days a week – buy online instantly!