What You Need To Know About Car Insurance Fraud.

It is estimated that motor insurance fraud costs the UK insurance market in excess of £ 1 billion a year. 

A further £ 2.1 billion of insurance fraud is said to be undetected annually. This figure includes ‘crash for cash’ scams and ‘ghost broking’. But what do these phrases mean, and how can they be avoided? Let’s find out!

Crash For Cash

It does as it says on the tin! This is when a fraudster or fraudsters purposely crash to claim cash. In many cases, incidents involve innocent road users who have been targeted for the staged act of fraud. The IFB (Insurance Fraud Bureau) has created this list of crash-for-cash hot spots.

Ghost Broking And Car Insurance

Ghost broking fraudsters sell fake policies over the phone, online and even in person. The policies are designed to look real but contain false information. A prime target is young drivers searching for cheap car insurance.

Remember purchasing a fake policy has consequences; your car may be seized or you could have to pay a fixed penalty notice of £300 and lose any premiums paid. A fake policy is treated the same as having no insurance at all!

Don’t Get Scammed.

Easier said than done, right? But there are a few things you can do to ensure you are purchasing legitimate cover. Using reputable companies that have been suggested by friends and family may be a good place to start. But there are plenty of other ways to check;

You can check your vehicle is registered on askMID.com; a database of valid insurance.

Give the insurer named on your policy a call and check they have the correct personal and vehicle details. And if a payment plan is required ensure you receive confirmation of this.

What information was requested before a quote was offered? Some fraudsters will quote without knowing all of the relevant information, such as your postcode, claims history, and annual mileage. Others will offer exceptionally low rates or ask to be paid in cash upfront—trust your judgement, and if it sounds too good to be true, it most probably is.

Reporting Car Insurance Fraud

Several organisations exist to help protect and warn consumers of fraudsters. One such organisation is the Insurance Fraud Bureau (IFB), which focuses specifically on the detection and prevention of insurance fraud. 

To report a fraudulent act you should contact CheatLine either over the phone 0800 422 0421 or online. The IFB also manages the IFR (Insurance Fraud Register), an industry-wide register of known fraudsters that aims to protect and keep premiums down for honest consumers.