5 car insurance scams every UK driver needs to watch out for

From crash-for-cash schemes to ghost brokers, fraudsters are finding new ways to target motorists. Here’s what to look out for – and the steps you can take to protect your money and insurance.

Car insurance fraud is becoming an increasingly serious problem for drivers, with scammers using everything from staged crashes to fake insurance policies to target them.

Over the last five years, more than 75% of crash-for-cash cases involved staged or induced collisions, according to recent figures from the City of London Police. The scams are also becoming more aggressive, with some fraudsters putting drivers under pressure to hand over money or accept inflated claims.

For motorists, the consequences can go far beyond a damaged car. Victims could face higher insurance premiums, a lost no-claims discount, repair costs, financial losses and, in some cases, physical danger.

Here are five scams you should know about, and the warning signs to look out for.

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1. Crash-for-cash scams

Crash-for-cash is one of the best-known types of car insurance fraud. Staged crashes have accounted for more than £25.3m investigated claims over a five-year period, according to the Insurance Fraud Enforcement Department (IFED).

Fraudsters deliberately cause or stage a collision and attempt to make the other driver appear responsible. Tactics can include suddenly braking for no apparent reason, pulling out in front of another vehicle and then braking, or deliberately driving into another car.

After the collision, scammers may pressure you to pay for the damage upfront rather than going through their insurer.

2. Wing-mirror scams

A wing-mirror scam can begin with something as simple as a noise.

A fraudster may deliberately make it appear that another car has clipped their wing mirror, sometimes throwing an object at the vehicle to create the sound of an impact.

They can then flag the driver down and point to pre-existing damage on their own vehicle, claiming it was caused by the collision.

Similarly to crash-for-cash scams, you may feel pressured to pay cash immediately. Going through insurance could also result in a higher premium, excess payment or loss of your no-claims discount.

3. Ghost brokers

Looking for cheaper insurance? You could fall victim to so-called ghost brokers.

These scammers pose as legitimate insurance sellers and offer fake or invalid car policies, often advertising through social media.

Ghost broking cases increased by 22% between 2023 and 2025, while victims reportedly lost around £2,000 on average, according to the Financial Conduct Authority (FCA).

The danger is that some drivers may believe they are properly insured until they need to make a claim or are stopped by police.

Consequences can include losing the money paid for the fake policy, being left uninsured, having a vehicle seized and facing fines or driving penalties. Personal and financial information handed over to the scammer could also be misused.

4. Fake accident claims

In some cases, there may not have been an accident at all.

Fraudsters can submit insurance claims pretending that a collision took place, potentially using another person’s details as part of the process.

For the innocent driver, this can create a lengthy dispute with insurers and potentially result in higher premiums. It can also mean personal information has been exposed as part of a fraudulent claim.

5. Inflated damage claims

Sometimes a genuine collision has taken place, but the value of the damage is exaggerated.

A dishonest claimant could also attempt to include pre-existing damage in a claim and suggest it was caused by the accident.

This can leave you facing disputes over what actually happened and how much damage was caused, while potentially affecting your future insurance costs.

How you can protect yourself

If you’re involved in a collision:

• Exchange essential details, such as your name, address, registration and insurance details. Don’t share extra personal information.
• Never hand over cash or bank details at the roadside.
• Contact your insurer as soon as possible and give an accurate account of what happened.
• Take photos and note details of the vehicles, drivers and passengers involved, where it’s safe to do so.
• Consider using a dash cam with a clear timestamp as evidence if you need to make a claim.

If you’re buying insurance:

• Be wary of deals that are much cheaper than similar policies, especially on social media.
• Check the insurer or broker is authorised using the FCA Firm Checker before buying.
• If you suspect an insurance scam, report it to the police and the Insurance Fraud Bureau’s Cheatline by calling 0800 422 0421.

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