National saves £500k by beating fraudsters

While the most important issue for the rental industry is preventing criminals from using rental vehicles to set up bogus crashes, National is also urging fleet managers to warn drivers of the tactics fraudsters use so they do not unwittingly become involved in a scam. National claimed staged accidents cost the insurance industry millions of pounds each year as fraudsters deliberately caused an accident with an innocent driver or an accomplice in another car, in order to make a false insurance claim. Dean Mugglestone, insurance and risk manager, National Car Rental, explained that when a fraudster uses a rental vehicle they often take out all available insurance and may only provide a mobile phone number for contact. He said the staged accident would tend to take place very early in the morning or late at night in remote areas with no witnesses. A third party known to the car hirer was often involved and there were often other passengers who claimed injuries such as whiplash. Mugglestone said: “A staged accident can involve anyone and drivers need to be aware of tell-tale signs, such as the motorist in front breaking suddenly or driving erratically for no apparent reason. “National's success in defending against these fraudulent claims proves the industry doesn't have to put up and pay out.” Nora Leggett, head of member services at the British Vehicle Rental & Leasing Association, said: “BVRLA members have access to a range of information for staff training to raise awareness of staged and exaggerated accident claims. “Members should work with their insurers and their other service providers to share this resource.”