Fraud & Scams

The cost of insurance fraud hit £1.3 billion in 2013 which was up 18% on the previous year, according to figures according to figures from the Association of British Insurers (ABI).   Britain’s largest insurer, Aviva, has reported that crash for cash scams have hit a new peak during 2014 and add £400m to the costs of motorists premiums. It says organised gangs are at the heart of the problem with a 21% increase in them this year compared to 2013.Despite raised awareness; the problem continues to blight the car insurance industry. Click here for a copy of the article. Alternatively if you’d like a hardcopy click here

Taxi businesses are particularly vulnerable as drivers’ annual mileages often exceed 5 times that of the average car user. For a taxi fleet this could mean thousands of pounds extra each year if steps are not taken to reduce the risk of being a victim.  

Listed below are some of the most common scams:




  • About Fraud

    Fraud now exceeds £1.3 billion pounds a year !

    The Association of British Insurers (ABI) says there are now 2,279 fake or inflated claims made every week. That costs the industry and honest policy holders over £100 million a month. In total fraudulent claims increased 18% compared with 2012.

    Fraud can come in all shapes and sizes, from the opportunist fraudster who may lose their watch and inflate its value, through to the highly organised “crash for cash” vehicle gangs. 

    Taxi drivers are particularly vulnerable as annual mileages often exceed 5 times that of the average motorist.

    This is especially the case for drivers and businesses who operate in areas where motor accident based fraud is more prevalent – see the UK Fraud Map  

    While fraud may seem a victimless crime insurance fraud does result in higher claims costs which are passed on through higher premiums.  

    For a taxi fleet this could mean thousands of pounds extra each year ! 

    For these reasons the industry is doing everything in its power to ensure dishonest claims aren't paid and honest ones are paid, however insurers cannot combat fraud alone and need your help to try and reduce the impact.


    Fight back -Victory in Court

    We were delighted to see Aviva fight a case which involved a taxi.   A tough stance to defend the taxi driver in a Scottish Court took place concerning a low speed impact into a stationary third party vehicle. A 15 month battle to claim damages of £30,000 resulted in only £850 being awarded to the claimant when it was shown that their vehicle sustained only rear bump scratches with no damage to the other vehicle.  

    The case was featured in the Scotsman newspaper on 23rd June 2014.  

    For further details and a copy of the article click here.        

  • Heard of Others ?

    If so please e-mail us at and tell us what happened. We plan to update this document for the benefit of the thousands of hard working taxi drivers who are trying to avoid these unscrupulous practices. 

    Our primary aim is to help taxi drivers and businesses avoid being victims and benefit from more manageable future insurance premiums.


    UK Fraud Map



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