Scams in which cars are deliberately crashed to claim fraudulent insurance payouts are on the rise, according to Queensland police.

They are investigating criminal networks involved in deliberately staging car crashes to claim insurance payouts. Major crime detectives are investigating at least 12 cases across the state, and they believe it is an emerging trend in insurance fraud across Australia, particularly in NSW and Victoria.

According to Brisbane’s Sunday Mail, Queensland police believe the scam has been triggered by legislative and technological changes targeting car theft and rebirthing.

They say the crashes are staged using cars insured at inflated prices and are carried out in a way that causes minimal injuries but enough damage for the car to be a write-off. Examples include crashing a car into a second empty car before a person gets in it and claims to have been driving.

Suncorp Executive GM Personal Insurance Jason McCracken told insuranceNEWS.com.au Suncorp companies have occasionally identified claims for staged accidents.

He says investigations have subsequently revealed that the collision either did not occur at all or that it didn’t occur in the way stated by the claimants, or that it may have involved other vehicles and perhaps a number of impacts.  

“Claims of this kind are treated very seriously by insurers and the police,” he said. “In situations where a staged accident has been identified, Suncorp engages investigators and forensic experts to verify the circumstances of the loss and the nature of the damage, and to make a determination about the legitimacy of the claim.

“We work closely with the Insurance Council of Australia (ICA) and police at both state and federal level to ensure that emerging trends of insurance fraud are identified and addressed at the earliest opportunity.”

ICA spokesmen did not respond to insuranceNEWS.com.au requests for comment.