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27/04/2010
Centenary Way in Manchester has been named the UK hotspot for 'crash for cash' accidents - in which car insurance fraudsters deliberately stage accidents to claim compensation.
And two junctions on the M65 in Lancashire round out the top three in a list of 10 locations released by Direct Line, which estimates that the scams total £350 million each year - adding to the premiums of "honest" drivers.
The company says that it compiled its rankings through analysis of insurance data, and with information from "coordinated nationwide investigations" by the car insurance industry. Locations in the north of England dominate, with junctions in Burnley and Stockport making up the top five, and a third location in Lancashire - in Preston - at number nine.
Meanwhile, the four South of England locations in the list are all in or near Greater London.
Recently, fifth-placed Eden Point roundabout, on the A34 in Stockport, achieved some notoriety as the preferred site of a high-profile group of fraudsters.
The gang, which is thought to have operated between 2005 and 2008, forced at least 92 accidents - typically by slamming on the brakes of clients' cars and causing following vehicles to crash into them, leading other drivers to believe they were at fault. The clients - who paid around £500 a time for the 'service' - would then file fraudulent claims for exaggerated damage or for injuries they had never received.
However, although more than 20 people faced charges in relation to the case, the gang was believed to have centred around Mohammed Patel, who in October was sentenced at Manchester Minshull Street Crown Court to four and a half years' imprisonment. Patel's preference for staging crashes at Eden Point ultimately led to the scheme's downfall, after nearby office workers recognised his involvement in multiple similar crashes at the scene.
Commenting on Direct Line's list, director of specialist claims Kate Lotts said that insurance fraud schemes posed a significant risk to public safety.
"Just the actions of a few can cost motorists a significant amount of money and pose a real threat to people's lives," she said.
A spokesperson for Admiral added that insurance fraud is not a "victimless crime".
"We all pay in our premiums. It is estimated that fraud as a whole adds £45 to every policy, so the actions of the dishonest motorist affects every honest motorist," he said.
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