Motorists are being urged to stay alert, as experts warn of a sharp rise in car insurance fraud, ranging from staged collisions to fake insurance policies sold online.
According to car insurance specialists at Zego, more than 75% of so-called “crash-for-cash” fraud cases now involve staged or deliberately induced collisions, with fraudsters increasingly using aggressive tactics to pressure victims into handing over immediate payments or accepting inflated claims.
Crash-for-Cash Scams Cost Millions
Crash-for-cash remains one of the most prominent scams on UK roads, with staged crashes costing an estimated £25.3 million over the past five years.
In these scams, fraudsters cause or stage a collision, often through sudden braking or by deliberately driving into another vehicle, in an attempt to make an innocent driver appear responsible. The fraudster will then frequently demand cash at the roadside, or push the victim to make a claim through their own insurance.
The consequences for victims can be serious, and may include personal injury, vehicle damage, aggressive confrontations, coerced payments, loss of a no-claims bonus, and higher premiums.
Sten Saar, chief executive of Zego, said drivers should watch for warning signs, including vehicles ahead travelling unusually slowly or braking suddenly without an apparent hazard, or other drivers pulling out at junctions before braking sharply. He added that motorists involved in a collision should be wary if the other driver tries to discourage them from contacting the police or their insurer, or offers to settle damage with cash on the spot. Damage that does not match the apparent direction or severity of an impact, he said, is another red flag.
Wing-Mirror Scams and Ghost Brokers
Fraudsters also use so-called wing-mirror scams, deliberately faking the sound or appearance of a collision, sometimes by throwing an object at a passing car, before flagging the driver down and pointing to pre-existing damage. Victims can feel pressured into paying cash at the roadside, or may end up losing their no-claims bonus and facing higher premiums if they go through their insurer.
Meanwhile, so-called “ghost broking” has surged by 22% between 2023 and 2025, with victims losing an average of around £2,000 after buying fake insurance policies. The problem appears to be particularly acute among younger drivers, as nearly half (49%) of young motorists have bought insurance through social media, yet almost four in ten (39%) say they are not confident in spotting a fake policy.
Ghost brokers pose as legitimate sellers but supply fake or invalid motor insurance, often advertising through social media. Victims believe they are covered, only to discover otherwise, sometimes not until they attempt to make a claim or are stopped by police. As well as losing money and being left uninsured, victims can face vehicle seizures, fines, and driving penalties, and risk having their personal and financial details exposed or sold on to other scammers.
Fake Accidents and Inflated Claims
Some fraudsters go further still, submitting claims for accidents that never happened at all, leaving victims to deal with exposed personal details, lengthy disputes, and potentially higher premiums.
In other cases, genuine accidents are exploited, with dishonest drivers inflating repair costs or claiming for damage that existed before the collision, leading to disputes over liability and, again, higher premiums for those involved.
How Drivers Can Protect Themselves
To guard against collision-related scams, experts recommend maintaining a safe following distance, fitting a dashcam with a clear timestamp to provide evidence if needed, and sharing only essential details, such as name, address, vehicle registration, and insurance information, after an incident. Drivers are also advised never to pay cash or hand over bank details at the roadside, to contact their insurer promptly with accurate details, and to note down relevant information and take photographs at the scene wherever possible.
How to avoid common car insurance scams
Collision scams
- Maintain a safe distance between you and the vehicles around you to ensure you can brake in time.
- Install a dashcam with clear timestamps to protect yourself from collision scams, so you can provide evidence if a collision occurs.
- You only need to provide your name, address, vehicle registration and insurance details in the case of a collision; do not provide any further details or allow other drivers’ access to your licence.
- Do not pay cash or give out your bank details at the roadside.
- Contact your insurer immediately if you are involved in a collision to provide them with the accurate details that are front of mind; this removes the ability for fraudsters to bend the truth or for you to misremember information.
- Take notes of all relevant information if you are involved in an incident, including the driver, passengers, and any other information. Take photos of the scene if you can.
Ghost broker scams
- Be wary of offers that sound too good to be true; often they are.
- Avoid any offers available through social media and not through the provider’s official website.
- Use the FCA Firm Checker to confirm the firm is authorised.
- Report any suspicions to the police and the IFB’s Cheatline on 0800 422 042.
Sten Saar, CEO of Zego, comments:
“With insurance scams becoming incredibly common, it is pivotal that drivers are aware of the methods used. Even if you think that it could never happen to you, it can.
Staying vigilant on the road is the first step to avoiding collision scams, and ensuring you are protected with dashcams can be vital if you are involved in an incident.
With insurance scams, knowledge is the biggest deterrent, knowing how to check the authenticity of brokers, not going for the cheapest deal regardless of not knowing anything about the provider and avoiding too good to be true offers is key.”
To avoid ghost broker scams, drivers are urged to be sceptical of deals that sound too good to be true, to avoid insurance offers made through social media rather than a provider’s official website, and to check a firm’s credentials using the Financial Conduct Authority’s Firm Checker.
Suspicions can be reported to the police or to the Insurance Fraud Bureau’s Cheatline on 0800 422 042.
