Avoiding motor insurance scams and reporting fraud

Understand how to spot and avoid car insurance scams, and when to report a potential fraudster.

Car insurance scams: what you need to know

Buying motor insurance should be straightforward, but the growing number of fraudulent insurance scams make it hard to know who to trust. Some deals may look genuine, especially when they’re shared on social media, but not all of them provide real cover.

Other types of fraud can occur once you’re on the road. Scammers may intentionally cause an accident or collision, or take advantage of you after a genuine accident.

Knowing how car insurance scams work, and knowing what to look out for, can help you avoid being caught out. Here we look at how to protect yourself and what to do if you fall victim to one of these common scams.

An adult using a laptop and mobile phone on a sofa in a living room, with two children nearby.

56%

of people aren’t aware that fake insurance policies sold by ghost brokers will leave them uninsured

28%

of people aren't aware of Crash for Cash scams

82%

of people aren't aware of online ad spoofing scams

Ghost broking

Ghost broking is one of the most common motor insurance scams. A ghost broker is someone who sells a fake or invalid policy using stolen or altered details. They may pose as an individual insurance broker or as a company. This is a type of insurance fraud, and it is illegal.

Three common methods of ghost broking

1

Genuine policies

They buy a genuine policy on behalf of their victim, often using incorrect details, that they cancel shortly after purchase and take the refund money.

2

Fake documents

They send over fake documents or give access to fake apps that look genuine but won’t provide real cover.

3

Stolen IDs

They use stolen IDs to take control over existing accounts with insurers or to buy new fraudulent policies.

Typical signs of ghost broking

Prices that look too good to be true

If the prices seem much lower compared to other quotes, or they advertise a guaranteed price, be cautious.

You’re asked to pay via cryptocurrency

Legitimate insurers do not ask for payment in cryptocurrency or other hard-to-trace payments.

Pressure to act fast

Scammers often claim it’s a limited‑time offer or push you to pay immediately.

Contact only through social media

If all communication is via social media or messaging apps, treat it as a risk.

Missing or unclear paperwork

Any reluctance to provide official documents or policy details should raise alarm bells.

Make sure your insurance is legitimate

Even if a deal looks good, it’s your responsibility to make sure your insurance is valid. A genuine policy should always be arranged through a regulated insurer or broker.

If you’re in doubt, check the provider is registered with the Financial Conduct Authority (FCA) or the British Insurance Brokers' Association (BIBA).

A person using a smartphone while sitting at a table indoors, looking confused.

What to do if you’ve been scammed by a ghost broker

If you think you’ve been sold invalid or fraudulent insurance, act immediately. Follow these three steps:

1

Arrange proper cover    

Contact a legitimate insurer to arrange proper cover. You must not drive until you have a valid insurance policy in place.

2

Report the scam    

Report the scam to the Insurance Fraud Bureau (IFB)    

You can report the details online to CheatLine on IFB’s website. You can make an anonymous report if you don’t want to share your details. Alternatively you can call confidentially on 0800 422 0421.

Report the scam to Report Fraud    

Submit a report online or call 0300 123 2040.

The Report Fraud website also provides support resources for fraud victims and advice for protecting yourself against other types of scams. Make sure you keep any evidence of messages, emails or payment records.

Other common car insurance scams

What are they and how to protect yourself against them.

A person sitting on a sofa talking on a phone at home.
Scam

Online ad spoofing

Online ad spoofing is when a fraudulent company poses as a claims firm or an insurer using paid for (sponsored) adverts on search engines or social media. Their aim is to get someone to call them and enter into one or more unsolicited third-party agreements. Victims of ad spoofing scams will believe they are speaking with their real insurer or a claims firm that works on behalf of their insurer.

Damaged car wing mirror hanging from the door with exposed wiring.
Scam

Clip for Cash

A Clip for Cash scam is when someone accuses you of damaging their wing mirror as you drive past them. Generally, the scammer will throw an item at your car as you drive past so that you believe you may have hit something and either slow down or stop. They’ll signal for you to stop, and then ask you to hand over cash on the spot to pay for the damages.

Two cars after a collision, with smoke rising and a person standing by an open car door holding their neck.
Scam

Crash for Cash

Crash for Cash is used to describe any instance where someone fakes an insurance claim for a collision that they may or may not have been physically involved in. A common example is where someone brakes very heavily in front of you so that you crash into the back of their vehicle, or a scammer will witness a genuine accident and make a fraudulent insurance claim to say that they were involved.