Commons Sense

House of Commons · Westminster Hall

Crash-for-cash Insurance Fraud

22 May 2024 · 5 other contributors · 6,745 words

Opened by Elliot Colburn Con Carshalton and Wallington

Responding minister: Thomas Tugendhat

Policing & ResourcesCrime & Law Enforcement

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Elliot Colburn raised concerns about crash-for-cash insurance fraud in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the increasing prevalence of crash-for-cash insurance fraud in the UK, involving staged or induced road traffic collisions for financial gain.
  • The Minister highlighted 130,000 reported cases of crash-for-cash claims with an estimated worth of over 70 million.
  • Moped-enabled fraud has increased significantly, posing additional dangers to road users.

Key requests to Government

I urge the Government to work closely with law enforcement and the insurance industry to establish joint strategies for prevention and detection of crash-for-cash scams. I request detailed statistics on such offences and a comprehensive plan to combat this issue effectively.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Elliot Colburn Con Carshalton and Wallington

I am concerned about the increasing prevalence of crash-for-cash insurance fraud, which involves individuals deliberately staging or causing road traffic collisions for financial gain. This includes induced accidents where perpetrators target innocent motorists, staged accidents with false damage claims, and fabricated incidents that never occurred. Victims often face rising insurance premiums and loss of no-claims bonuses. Cases have been reported in Wallington, Sutton, and Carshalton, highlighting the need for vigilance and public awareness.

Other contributors (5)
  • Alex Norris Lab Co-op Nottingham North and Kimberley

    Concerned about the increasing frequency of crash-for-cash incidents, with fraudulent claims impacting insurance premiums. Emphasized the emotional toll on victims and highlighted the need for better enforcement in hotspots where such crimes are prevalent.

  • Alison Thewliss SNP Glasgow Central

    Alarmed by the rising incidence of crash-for-cash fraud, Alison Thewliss highlighted Glasgow's position as sixth in national league tables for such claims and noted Allianz data showing a sixtyfold increase in motorbike crash-for-cash claims in 2023. She cited Aviva's figure of £59 million lost to motor fraud annually. Emphasising the impact on insurance premiums, Thewliss stressed the need for increased public awareness and vigilance among drivers. She also raised concerns about organised crime involvement and requested details on social media usage in facilitating such scams.

  • Gregory Campbell DUP East Londonderry

    He congratulates the hon. Gentleman on securing the debate and expresses shock at the high figures of crash-for-cash fraud, warning that millions of motorists will suffer as a result in ongoing years.

  • Siobhain McDonagh Lab Mitcham and Morden

    Ms McDonagh declared an interest as a potential victim of crash-for-cash scams. She detailed her experience on a residential road where a moped driver deliberately caused a minor collision to claim insurance money, affecting over 170,000 people annually and valued at £392 million yearly. Organised crime gangs target women during school runs due to perceived lesser resistance and focus on hotspots like Thornton Heath in south-west London.

  • Steve Double Con St Austell and Newquay

    The hon. Gentleman is absolutely right, and I will come on to that point shortly. This is not a victimless crime; it is not that the fraudster gets some money but no one is worse off. Real people's insurance premiums are going up, often by an amount that they cannot afford, and we absolutely must do something about it.

Government Response

Thomas Tugendhat

It is a pleasure to serve under your chairmanship, Ms Fovargue. I am delighted to speak in a debate secured by my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn). The Minister highlighted that insurance fraud is not a victimless crime and affects families across the UK financially. He noted 130,000 cases of crash-for-cash claims have been reported with an estimated worth of over £70 million. Moped-enabled fraud has also increased significantly, posing dangers to road users. The Minister acknowledged that tackling insurance fraud involves collaboration between policing, solicitors, regulatory authorities, and other oversight organisations. He praised the Insurance Fraud Bureau for its awareness campaign on moped scams last year. The Government has hired thousands of new police officers over the past year, many of whom are dedicated to fighting fraud. There is now a 16% decrease in fraud crime targets compared to the previous year. New legislation through the Financial Services and Markets Act 2023 requires the payment systems regulator to introduce mandatory reimbursement for authorised push payment scams by October.

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