Durham Constabulary believe the crimes cost insurers more than £3m
Four men suspected of committing 'cash for crash' insurance fraud have been arrested.
The offences involve fraudulent claims against insurance companies for the recovery, repair, disposal or replacement of vehicles damaged in crashes, plus associated car hire costs.
Four men from Derwentside and Darlington are being questioned at County Durham police stations as part of the constabulary's Operation Sledgehammer initiative to tackle organised crime.
Superintendent Rob Coulson of Durham Constabulary said: “We believe this to be organised crime on a large scale, involving more than 300 accidents, averaging around £14,000 per claim.
"In total, we believe these crimes have resulted in losses of well over £3m to those insurance companies. We know for a fact that car insurance premiums have increased substantially in the Derwentside area, the indication is well in excess of the national average. Some drivers in Derwentside are struggling to find any companies prepared to insure them.”
Insurance Fraud Bureau director Glen Marr said: “Defrauding an insurer is now a high risk activity and the industry is not a soft target for criminals. The message is loud and clear – seek to defraud an insurer and you risk serious repercussions, to include prosecution and seizure of assets.
“Together with the police, we will continue to find, expose and pursue individuals and gangs involved in this kind of criminal activity.”
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