Crash scams cost insurers 350m pounds

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Car insurance companies are losing out on more than 350 million pounds every year to criminal gangs who stage bogus crashes, it has been claimed.

Detectives believe that the lucrative "crash for cash" cons are seen as carrying little risk and the Metropolitan Police has created a specialist unit to deal with the scams.

Fraudsters spark a collision with an innocent motorist to begin the scam, before billing insurance companies for up to 50,000 pounds for courtesy car hire, personal injury claims, legal fees and vehicle storage.

Detective Chief Inspector Nick Chalmers, who noted that the Serious Organised Crime Agency (Soca) suggested the cost of the scams could be 350 million pounds every year, said: "It is dangerous not just to the car targeted but to other people confronted with carnage on the roads."

Frontline uniformed officers at the Met have been warned to look out for suspicious crashes, while telephone operators have been told to send officers to every suspect incident.

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