How to Spot Car Insurance Fraud

How to Spot Car Insurance Fraud

As the vast majority of people have a car and thus car insurance, car insurance scams are big business. There are many different types of scams and in order to not get caught out by one, it’s a good idea to be clued up on what they are and how to spot them.

Most of us don’t have time to look at every detail of these long documents and terms and conditions when buying car insurance, which is exactly how these scammers get you. The first good rule of thumb is to check the source properly and read the documents they send over.

These fraudsters cause serious damage to a lot of people’s lives by tricking them out of their savings, so if you could pass these useful tips onto someone that is vulnerable, we can help eradicate these con artists.


Let’s take a look at some of the most common car insurance fraud schemes and how to spot them.

Ghost Broking

This is one of the most common car insurance scams and has been on the rise over the past couple of years. Ghost broking is exactly what it sounds like, it is someone pretending to be a legitimate car insurance broker. They target younger people as they are likely to get the most money from them and then send them fake documents, making them believe they have genuine car insurance. These poor people only usually find out when stopped by the police.

To spot these fraudsters, all the normal rules apply. If the car insurance deal is too good to be sure, then it probably is. Similarly, pay attention to their email address or the method of contact they are using. Normally, these scammers will use a dodgy email address or WhatsApp to communicate. Trustworthy insurance brokers will only ever use their company email. Ask what company they are representing and do your research.

Cash for Crash Schemes

This is a darker crime that these fraudsters are forcing on innocent people. This scam involves forcing a driver to crash into the back of someone so that they can claim on their car insurance for injury or damage. They do this by distracting the driver or stopping suddenly. This is profitable because the driver at the back is most often found guilty thanks to the highway code.

To avoid this scam it is important to always pay attention to what’s in front of you and to not get distracted if it looks like someone is trying to distract you. Be sure to always keep a safe distance between you and the car in front and even add extra distance if you see them acting strange.


Car insurance scams are widespread and can be very harmful, physically and emotionally. It is concerning that they are becoming more prevalent, but this just means you have to be more vigilant when it comes to car insurance and driving in general. Ghost broking car insurance scam will try and trick you that they either represent a credible insurance company or they are a new one. Do your research and make sure they are legitimate. When driving, always keep your distance and pay attention, you never know when a crash for cash scammer is about.