Car insurance scams are unfortunately common, and they can leave you with significant financial losses and legal troubles.
In the UK, car insurance fraud has reached unprecedented levels, with insurers uncovering over 33,000 cases of fraud in 2024 alone, amounting to a total of £157 million [1]. This equates to approximately 90 fraud cases per day, costing the industry around £430,000 daily [2]. At Vavista, we want to help you stay informed and protected.
Here’s 4 common car insurance scams to be aware of and how to avoid them:
1. Staged Accidents
In staged accidents, fraudsters deliberately cause a collision to make false insurance claims. They might brake suddenly, causing you to rear-end them, or orchestrate a crash at a junction. These scammers often work in groups, with fake witnesses and passengers who will back up their false claims.
How to Avoid It: Always maintain a safe following distance and be cautious of erratic drivers. If you suspect someone has staged an accident, thoroughly document the scene with photos and videos, and report your suspicions to your insurance company.
2. Ghost Brokers
Ghost brokers are unlicensed individuals who sell fake insurance policies. They often target young drivers looking for cheaper insurance. These policies are either completely fake or purchased with false information, making them invalid.
How to Avoid It: Verify the broker’s credentials and ensure they are registered with the Financial Conduct Authority (FCA). Always purchase insurance from reputable companies and avoid deals that seem too good to be true.
3. Exaggerated Claims
Some fraudsters exaggerate the extent of damage or injuries after a legitimate accident to receive a larger payout. They might claim for pre-existing damage or inflate repair costs.
How to Avoid It: After an accident, document all damages and injuries thoroughly. Get multiple repair quotes and keep all receipts and medical records. Report any suspicious behavior to your insurance company.
4. False Personal Injury Claims
In this scam, fraudsters claim to have sustained injuries in an accident that either didn’t happen or was minor. They might use fake medical reports and witnesses to support their claims.
How to Avoid It: Be cautious of anyone who seems overly eager to claim injuries after an accident. Document the scene and gather as much evidence as possible. Report any suspicious claims to your insurance company.
How to Report Insurance Fraud
If you notice any suspicious activity, you can report insurance fraud confidentially and anonymously to the Insurance Fraud Bureau. Use their confidential Cheatline by calling 0800 422 0421 or by reporting online.
At Vavista, we are committed to providing genuine and reliable car insurance. Stay vigilant and informed to protect yourself from these common scams.
Get a genuine car insurance quote from Vavista today and drive with confidence!
