Man jailed for £100,000 ‘crash for cash’ plot

A man has been jailed and two men have been sentenced for an unsuccessful ‘crash for cash’ plot, which could have cost LV= General Insurance £102,827.

Two of the men deliberately staged a collision between two cars, including an Aston Martin that they falsely stated was worth around £60,000, and went on to submit claims on insurance. 

Inconsistencies between the trio’s accounts of the collision and the damage to the cars raised alarm bells with LV= and Direct Line Group (DLG), the companies that insured each car, and the case was referred to the City of London Police's Insurance Fraud Enforcement Department (IFED) for investigation.

A jury at Gloucester Crown Court found the men guilty of fraud by false representation and perverting the course of justice following a three-week trial in August 2024. They were sentenced at the same court on Thursday 19 December 2024 as follows:

• Edwin White, 65, of Dibden Lane, Tewkesbury, was sentenced to 18 months imprisonment.
• Nicholas Ralph, 67, of Station Road, Cheltenham, was sentenced to six months imprisonment, suspended for 12 months. He must also pay £6,300 compensation to LV= and a fine of £1,000.
• Clive Moore, 51, of Hanham Road, Bristol, was handed a nine month community order. He must also complete 100 hours of unpaid work and pay a £1,000 fine.

Detective Sergeant Chris Jones, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said:

“White and Ralph could have put themselves at risk of physical harm in the pursuit of insurance money. Cases like this demonstrate the greed of insurance fraudsters and the measures they will take for financial gain. 

“Crash for cash fraud pushes up the cost of insurance premiums for the public. An average of over £1.3 million worth of bogus motor insurance claims were detected each day in 2023, showing that insurance fraud doesn’t go unnoticed by the industry or law enforcement. We will work collaboratively to bring fraudsters to justice, as this case shows.”

On 4 May 2018, a Peugeot 208 driven by Ralph collided with an Aston Martin DB9, driven by White.

White contacted his insurer, DLG, to report that the Peugeot had hit a pothole in the road and swerved into the Aston Martin’s path. White claimed that he swerved to try and avoid the car, which resulted in his Aston Martin hitting a wall and a post. He stated that he had paid £59,995 for the Aston Martin and had bought it in a very good condition.

A few hours later, Ralph contacted his insurer, LV=, to report the collision and claim for damage to the Peugeot. Both Ralph and White alleged that they did not know each other and LV= settled Ralph's claim for £6,300.

Despite White’s claim that he had bought the Aston Martin in a good condition, examinations commissioned by the insurers showed that the inside was in poor condition. The insurers also found that the garage where White purchased the Aston Martin did not routinely sell vehicles at such a high price.

LV= commissioned GBB to carry out a further, detailed examination of the cars, which concluded that the damage to the Peugeot was not consistent with it hitting a pothole.

On 9 July, White told DLG that he had found the contact details of a third party, Moore, who had witnessed the collision. Moore was interviewed by LV=, during which he stated that he had been driving behind the Aston Martin and witnessed the collision.

White sent DLG a bank statement as proof that he had paid £59,995 for the Aston Martin. When LV= made enquiries with White's bank, the bank could not trace the transaction.

On 23 August, LV= received an invoice worth a total of £42,832 for car hire charges. Due to the concerns it had around the validity of the claims, LV= cancelled Ralph's insurance policy and asked him to repay the £6,300 he had received in compensation. The following day, White was told that his claim had been rejected.

Ben Fletcher, Director of Financial Crime at LV=, said:

“Cash for crash frauds are a serious problem and these verdicts will serve as a warning to anyone else thinking of staging a crash to falsely claim compensation.

“The vast majority of claims are genuine, and we do all we can to settle them promptly, but this case highlights the lengths some people will go to make fraudulent claims.

“We are resolute in our determination to identify and defend against any type of fraud. There is a simple message here: if your claim is genuine, we will deal with it as quickly and fairly as we can. If greed takes over and you try and commit fraud, then be warned you may face unintended consequences, including being convicted in court and a criminal record.”

The case was referred to IFED in September. Call data was obtained and showed that Ralph and White had been in contact with each other before and after the collision took place.

Stuart Stevens, Head of Counter Fraud Intelligence at Direct Line Group, said:

“At Direct Line Group, we’re committed to detecting and deterring as much fraud as possible and across our business. We have highly skilled investigators who are working continuously with intelligence to crack down on fraudulent claims like this one. 

“We work with all law enforcement agencies to assist them in preparing cases for criminal prosecution. We are delighted that the perpetrators of this fraud have been brought to justice. Their sentences should serve as a stark warning to others that insurance fraud is not a victimless crime, and harsh sentences will be sought in support of Direct Line Group’s zero tolerance approach to insurance fraud.”