Crash for cash warning as van premiums rise

A recent trend of “crash for cash” scams involving vans and mopeds caught our eye recently. It’s a concerning prospect, with reports of this fraudulent scheme first seen in London last summer but now spreading across the UK.

And as the latest van insurance price data is released, surely scams like this are only going to make matters worse? Brace for impact as we explore this seedy scam and how it could affect your premium.

How “crash for cash” works

Traditional “crash for cash” scams involve fraudsters slamming on their car breaks in the hope that the victim driving behind can’t stop in time. But this newer version sees scammers on mopeds deliberately manoeuvring their vehicles into the path of reversing vans to induce an impact.

They then make false claims for vehicle damage and personal injuries, aiming to exploit insurance policies. It’s a concerning prospect, especially if you’re on the road regularly with your work. The chances of you encountering one of these criminals could be much higher!

Recognising the red flags

It’s natural to be worried or concerned if you’re involved in an incident on the roads. But keeping a cool head and remembering these warning signs could help you steer clear of a scam. These are some of the common signs of a staged accident:

Overreaction to the accident: If the other driver appears overly upset or angry and insists on calling the police or an ambulance for a minor collision, this could be a red flag.

Immediate claim of injury: Be wary if the other party immediately claims serious injury, especially if the accident was minor.

Quickly appearing witnesses: Witnesses who appear very quickly and support the other driver’s story might be involved in the scam.

Inconsistent damage: Look for damage on the scammer’s vehicle that doesn’t match the nature of the crash.

Insistence on specific service providers: The scammer might push for using a particular recovery service, repair centre, doctor, or legal firm.

Rapid insurance claim: A quick demand for insurance claims, often with immediate payment requests for vehicle repairs and medical expenses, is suspicious.

What to do if you suspect a scam?

If you believe you’ve been targeted in a ‘crash for cash’ scam, take the following steps:

Report the incident to the police and your insurance company as soon as possible.

Document everything: Take photos of the scene, note down witness details, and record the other driver’s behaviour and statements.

How are crash scams affecting the market?

Between 2022-23, around 2,250 people in London alone are believed to have been a victim of this “crash for cash” scheme. It’s an epidemic, according to the Insurance Fraud Bureau. Investigators estimate the total value of bogus claimed linked to the fraud to be £27 million.

It’s a concerning to think that if a fraudster were able to get you in one of these scams, you could see your premiums rise. Especially as insurance costs have risen significantly in the last year.

Van premiums: where do prices stand?

The average quoted price of van insurance rose by 24.7% in the year to June, the latest Consumer Intelligence Van Insurance Price Index shows, but the rate of increase continues to slow down. It’s a welcome sign of positive change, especially as prices only increased 2.7% in the past three months. That’s the lowest increase for the past five quarters, following the previous quarterly increase of 3.3%.

Data shows that in June 2024, the quoted premium for a new van insurance policy most commonly fell between £750 and £999 – 16.4% of quotes falling within that range. Van drivers across the spectrum have suffered the effects of higher quoted prices, but just 28.5% of under-25s were able to obtain quotes for less than £1,500, compared with 89.3% of those aged between 25 and 49, and 97.5% of the over-50s. Owners using vans for social, domestic and pleasure saw increases in quoted premiums of 26.5%, while tradespeople experienced rises of 24.1%.

How to save money on your van insurance?

So, if you’re looking to save you your van premium, what can you do about it? Here’s a few hints and tips…

Firstly, get organised and make sure you’ve got all your details and data up to date. It sounds obvious, but it’s easy to lose track of things especially when you’re running a business. A move to a new postcode, an outdated vehicle valuation or getting your vehicle purchase date wrong can all impact the price of your premium. There can be big discounts depending on how long you’ve owned and driven a van for, so have all the correct paperwork on hand.

Secondly, consider all your other insurance policies. Having public liability insurance could reduce your overall risk profile and get you a better quote, so mention it to your insurer. And if you have unsecured tools, make sure you’re removing these overnight. You could benefit from separate tools insurance or goods in transit insurance, depending on how you use your van.

Van and tool theft is a booming criminal trade, alongside “crash for cash” scams, so make sure you’ve got good security precautions in place. Thatcham-approved measures such as an alarm, immobiliser, tracker, steering/gearstick/handbrake locks, could all reduce the cost of your premiums. Mention this to your insurer, especially if you’ve changed anything since your last renewal. Certain insurers may also offer discounts if you have a dash cam fitted – and it could also come in handy to review accidents or close calls!

And lastly, talk to a broker! A specialist broker, such as Howden, can access products that aren’t available on comparison sites and can tailor a policy to suit your exact needs.

Here at Howden, we get to know you and your business. Our knowledgeable van insurance specialists  know the right questions to ask, and can answer any questions you may have. Find your local business branch here.

Sources: Consumer Intelligence, Ageas, This Is Money

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