New iPhone app to help motorists after an accident

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A brand new application designed by award-winning developers, 2ergo, has just been unveiled to help motorists collect essential data following an accident. The iAccident app can be downloaded onto a smart phone and incorporates GPS, image, time and geographical location mapping to help build an accurate picture of the location and events surrounding a car accident.

When we’re involved in a bump or serious accident with another vehicle, it’s natural to feel flustered and to forget to take down basic information which your insurer will need when trying to process a claim. This is where the new app comes in as by simply following the instructions laid out on the application, you’ll ensure that all relevant information is collected and stored before leaving the site of the incident.

All reports containing details from the scene of an accident can be submitted online via the app to the iAccident database where they will be saved and either forwarded onto your insurer, or to yourself, to help in the claims process.

The developers of the new app believe it will help validate legitimate insurance claims and guard against fraudsters attempting to carry out cash-for-crash scams by causing accidents by deliberately crashing into honest drivers and making personal injury claims after an incident.

A white label version of the iAccident has been designed so insurers can create their own version for their policyholders.

Cash for crash insurance scamming brothers jailed

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The men behind what has been described as the biggest cash for crash scam in Britain have been jailed for a total of 11 years between them. Brothers, Rezwan and Rehan Javed were found guilty of conspiracy to defraud and possession of an article for use in fraud at an earlier trial. Rezwan received a jail sentence of 6 years, while his older brother Rehan was jailed for 5 years.

It is understood that the duo paid drivers to drive around roundabouts and brake suddenly, causing the driver behind to smash into the rear of the car. The brothers would then make numerous claims from the insurance company, falsely claiming for vehicle write-offs, and for personal injury claims for at least three passengers travelling in the vehicle which was hit, netting £3,000 in compensation per passenger.

It’s been reported that the two brothers made almost a £1 million pounds through their cash for crash scams. The pair ran a company which took a cut from the solicitors referral fees, courtesy car hire and storage and recovery of the vehicles.

The two brothers were found guilty of defrauding the insurance companies at their trial at Manchester Crown court last week. In 2008 another member of the gang, Mohammed Patel, run by the Javed brothers was jailed after he admitted being the driver in over 90 cash for crash collisions.

Women more likely to bend the truth when taking out car insurance

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Female drivers are more likely to bend the truth when applying for car insurance, according to recent research carried out by eCar.

The eInsurance Group which serves 280,000 insurance applications every month carried out research into the habits of both sexes when it comes to divulging information which could have an effect on their insurance policy. The insurance provider say they have noted an upturn in the number of female drivers avoiding the truth when taking out policies.

In May of this year, the provider revealed that 20% of their policies underwent fraud investigations. Out of those policies which were subsequently declined, 51% were made by women, while 49% were made by men.

The top untruths uncovered by the investigations included not fully disclosing convictions, of which 47% of women were guilty compared to 64% of male drivers. Giving misleading information regarding licence length was highlighted as a reason for revoking 68% of insurance policies for women drivers, and 32% of male drivers. 53% of female policy holders and 47% of male policy holders were caught out as a result of incorrectly stating the length of their no claims bonus.

Car insurance fraud has added 38% to the cost of all annual insurance policies over the last year, forcing 1.3 million drivers off the road as they can no longer afford the cost of their premiums.

The results have spurred eInsurance to start a new campaign, Truth or Dare, to encourage drivers to take a more truthful approach to their car insurance.

Home insurance premiums increase by 46% in certain areas of UK

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A recent survey has found that home insurance premiums have risen by almost 50% in certain areas of the UK with the increase in fraud and the recent spate of bad weather being blamed for the sharp rise in premiums.

Where you live has a huge bearing on how big of an increase you’ll see in the cost of your annual home insurance. In Glasgow home owners have seen an increase of 36% from £111 last year, to £151 this year, while Dorking in Surrey saw a rise of 46%.

Greater London boroughs have been worst hit out of the whole of the UK, although the town of Dorking has seen the very biggest jump in the cost of their cover with home insurance up by a massive 46% compared to last year. In 2010 the average annual cost of a home insurance policy in Dorking was £119, compared to £174 in 2011.

The insurance industry say the increases have come about as a result of the large number of claims they received for repair work following the extreme cold snap which hit Britain this winter, and also because of the increased level of fraud.

On average the cost of home insurance has risen by 6% for UK homeowners, and according to industry experts, premiums are likely to continue rising year on year.

Car insurance scammers on the rise

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Car insurance scammers who stage accidents in order to claim money off the innocent party’s policy are on the rise, according to recent statistics.

It’s been estimated that these “cash for crash” fraudsters cost the insurance industry £350 million last year, adding an extra £44 to the cost of each UK motorist’s car insurance policy.

The most common technique employed by these fraudsters is to cause a situation whereby the innocent driver behind them, crashes into the back of their vehicle. It’s generally accepted that the driver who rear-ends another vehicle is in the wrong.

The scammers often set up these “accidents” on clear roads, or at roundabouts. Another trick they use to lead the victim into rear ending their vehicle is to slam on their handbrake so the driver behind won’t be alerted to the fact that the vehicle in front is stopping from the brake lights.

Victims are not chosen at random, instead the scammers single out elderly drivers, and lone parents, as they are less likely to fight the insurance claim. Commercial drivers are also a favourite with the fraudsters as they are less concerned about the damage as their vehicles are owned by their company.

The average amount obtained from each claim was approximately £17,000. This amount includes costs for personal injury, and also the damage to and recovery of the vehicle.

Parents warned against “fronting” on a child’s car insurance policy

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Parents are being warned against “fronting” as the main driver on a son or daughter’s car insurance policy to keep the cost of cover down.

Insurance companies are advising individuals who carry out this practice that they are invalidating the car insurance policy by giving incorrect information, and also committing insurance fraud.

A survey found that 35% of drivers saw “fronting” as a loophole by which to obtain cheap car insurance for a younger driver. The price of insurance for new drivers is notoriously expensive which is why some parents take the decision to place themselves as the first named driver on the policy, when in fact the vehicle is driven more frequently by their child.

However not only is this practice illegal, but by giving false information on an insurance policy, the cover is likely to be invalidated.

Police also warn that those caught without adequate insurance cover will face stiff penalties, and possibly even prosecution. Although many parents don’t realise they are committing an offence by naming themselves as the principal driver instead of their child, is how many of these problems arise.

Car insurance specialists have reported a lot of confusion amongst drivers in regards to giving accurate information on a car insurance policy. They hope drivers will heed this warning bringing an end to “fronting” on vehicle insurance policies.