Investigation into repair costs & Fraudulent claims

In September 2012 it was announced that the Competition Commission had launched an investigation into the UK system for credit repairs and credit hire of an alternative vehicle by a 3rd party following a non-fault accident. It was announced that insurers of vehicles that had caused a valid claim were unable to control the costs that were applied to the claim by means of repairs, storage, vehicle hire, referral fees and personal injury claims. Many accident management companies will take over the running of a non fault claim and arrange everything for the 3rd party. The subsequent cost of some of the items submitted for consideration has been a cause for concern over recent years and this has caused an increase in the premium costs. Also, the recent craze of "Cash for crash" has substantially raised the cost of policies. This is where two parties arrange a collision between their vehicles and one driver making excessive claims for damage and non existent injuries to themselves and the passengers that they had arranged to be "in the vehicle" at the time of the collision. Another recent development has seen crashes being caused delibarately by a driver "slamming" on their brakes so that the driver behind impacts them, this is usually carried out at roundabout junctions, when the following driver is looking to the right for oncoming traffic and does not notice that the vehicle in front has suddenly stopped for no reason.