Driving advice
How to avoid car insurance scams
What to do if you’re a victim of fronting, ghost broking or other fraudulent activities
Ryan Barham
Last updated: 20/10/2025
Ryan Barham
Last updated: 20/10/2025
Whether opportunistic, organised or accidental, fraud can affect all motorists. Car insurance scams are a very real issue with an Insurance Fraud Bureau report finding that 95% of those polled ‘knew little’ or ‘knew nothing’ about insurance fraud.
People who are targeted with fake insurance adverts risk driving uninsured if they buy a policy from these outlets. Penalties for driving without insurance include a potential fine of £300 and 6 penalty points.
There’s also a chance that your vehicle could be seized (even with impound car insurance, this will cost at least £150 for it to be released). You could also face a court hearing where you might receive an unlimited fine and driving ban.
You could also lose some of your money or face a potentially lengthy – and costly – legal process to claim it back.
Insurance fraud is an expensive business and the costs of dealing with it falls on to all motorists through increased premiums.
The AA states that car insurance fraud is anything that tries to cheat your insurance provider. This could include:
It’s not just drivers who can be fraudulent. If an insurance company knowingly denies a customer a benefit that’s owed, that could also be considered fraud.
Ghost broking is a practice where illegal insurance intermediaries offer fake insurance for a low price. These policies are not worth the money they are written on and can include:
If you use a Ghost Broker, your policy may be cancelled by the provider with no cover deemed to have been in effect and you may be liable for any injuries or damage caused while the policy is in force. Your car could potentially even be impounded. It’s unlikely you’ll get your money back and you’ll also have to buy a new, legitimate policy.
It’s important to know the signs of a Ghost Broker to stay safe and insured.
Fraud costs the insurance industry a significant amount each year, and part of these costs will be passed on to policyholders. By reducing insurance fraud, this could ultimately bring down the cost of insurance for consumers.
If you come across what you believe is a Ghost Broker using the Tempcover name and branding, contact us on [email protected] with the following details:
Once you’ve done this, our fraud team will investigate the issue and work with industry experts and organisations to identify and investigate the fraudster. You can also report insurance scams to the IFB CheatLine (powered by CrimeStoppers) on 0800 422 0421 or at https://insurancefraudbureau.org/cheatline.
There’s a lot more to Crash for Cash than its catchy title. It’s a scam where fraudsters deliberately engineer an accident so that they can make a claim against other drivers. This could be while parked or on the road (suddenly braking so they’re hit from behind).
Allianz’s research found that a high proportion of crash for cash scams (4 in 10) happen between the school run and rush hours of 3 and 7pm and 27% happen during the lunchtime hours of 11am and 2pm.
There are many different indications that other drivers on the road might be planning a scam. First, be wary of how they are driving: are they braking unexpectedly or moving erratically? Try to keep your distance and stay safe if you have any doubts.
If you’re unlucky enough to have an ‘accident’, consider whether they have all the details to hand and if they seem pretty confident and relaxed after what, for most people, is a very stressful experience.
It’s important to take photos of the damage, take down their details and any other relevant information. Once you’re confident to do so, contact your insurer to let them know what’s happened and report suspicions to the IFB CheatLine on 0800 422 0421 or https://insurancefraudbureau.org/cheatline.
The simple explanation for car insurance fronting is when someone is added as the main policy holder when they are not the primary driver of the vehicle. A classic example is when a parent puts themselves down as the main driver even though their son or daughter drives the vehicle more than them.
People do this because older and more experienced drivers tend to have lower premiums than younger and new drivers. There may be entirely innocent reasons for people doing this and they might not even know they’re breaking the law.
If you are caught fronting, you could:
Insurers can use many different techniques to see if people are guilty of fronting.
When you get a quote, you will be asked who the owner, registered keeper, main driver and named drivers of the vehicle are. You need to be honest and truthful when answering these questions.
Complete your form honestly, listing each driver correctly. Even accidental dishonesty could void your policy.
You may come across fake ads online that promise very cheap insurance deals under the name of an established insurance broker. You need to be careful that the company you’re buying from is legitimate. Look out for the telltale signs of fraudulent activity listed above and make sure you can see the Financial Conduct Authority No.
The Association of British Insurers exists to provide peace of mind to insurance customers across the UK. Although not regulators, they engage with high-profile figures in the industry and help consumers understand the issues that it faces. This includes highlighting the dangers of scams including fronting, Crash for Cash and Ghost Broking.
If you’re in need of temporary car insurance after buying a new car or you’re borrowing a car after yours was damaged in a scam, you can trust Tempcover to get you where you need to go in the short term. Enjoy fully comprehensive coverage from 1 hour up to 28 days and get a quote in under 2 minutes.
Sources
https://www.theaa.com/car-insurance/advice/insurance-fraud
https://www.experian.com/blogs/ask-experian/the-latest-scams-you-need-to-aware-of/
https://www.autoexpress.co.uk/consumer-news/364256/car-insurance-scams-expert-advice-how-avoid-them
https://www.abi.org.uk/products-and-issues/topics-and-issues/fraud/
https://www.insurancefraudbureau.org/stop-the-scams
https://insurancefraudbureau.org/insurance-fraud/ghost-brokers
A third party would need your details to be able to claim on your insurance. This is unlikely but can happen. If you have any concerns, contact your insurer directly and they’ll be able to tell you all about it.
If you have reason to believe you are a victim of a scam, you should report your concerns to the police and IFB CheatLine on 0800 422 042. You should also inform your bank if you have lost money and let your insurance company know.
Insurance fraud is a grave offence under Section 134.2(1) of the Criminal Code, potentially leading to a 10-year imprisonment sentence. As an indictable offence, it ranks among the most serious crimes. Therefore, it's vital to approach insurance matters with utmost honesty to avoid such severe consequences.
To report fraud, solid proof is required showing the individual knowingly engaged in fraudulent actions, such as using a known fake document to deceive others. Fraud hinges on deliberate intent, excluding accidental or unintentional acts. Gathering substantial evidence is crucial for building a robust case.
Be vigilant for 'crash for cash' schemes. Parked vans near junctions and moped riders in residential areas may indicate planned fraudulent accidents. After a collision, fraudsters often exaggerate injuries. Moped riders involved in such scams typically retain their helmets post-accident to avoid identification.
Lying on your insurance application can lead to severe consequences. Insurers scrutinise claim details and discrepancies can result in increased premiums, policy cancellation, or even fraud charges. In the UK, insurance fraud is a punishable offence. Therefore, honesty from the outset is crucial to avoid complications. Remember, integrity is key in insurance matters.
Fronting insurance is when a car's main user is not listed as the main driver on the insurance policy, such as parents insuring a car in their name that their newly-licensed son mainly uses. This is considered insurance fraud, so the son should be correctly listed as the main driver to avoid fronting.
To avoid fronting on your car insurance, ensure the main driver listed is the car's primary user. As circumstances change and the frequent driver may vary, it's crucial to promptly inform your insurance provider. This ensures accurate, legal coverage and prevents potential fronting issues.
If caught fronting, your insurance claim may be partially or fully denied, and your policy could be cancelled. You may also face legal repercussions, including fraud prosecution leading to a criminal record. This could make securing future insurance difficult, as insurers may consider you a high-risk policyholder due to past fraudulent activities.
Regularly monitor your financial accounts for unfamiliar transactions and mail for unexpected items to detect identity theft. Annually, obtain free credit reports from Equifax, Experian, and TransUnion to check for unauthorised accounts. Review your National Insurance contributions on the gov.uk website. Report suspicious activity to your bank, police, and Action Fraud. Protect your identity diligently.
Imposter scams involve individuals posing as government or business representatives via phone, text, email or in person, often manipulating caller ID details for authenticity. These scams aim to trick you into revealing personal information or money. Always be wary of unexpected communications and independently verify the caller's identity and request legitimacy before responding.
Insurance claims typically require policy details and proof of identity, making it unlikely for someone to claim without your information. However, if they have your vehicle registration number, they could potentially make a claim. In such cases, your insurer would thoroughly investigate the claim's validity. Report any suspected fraud to your insurer and the police immediately.
When a claim is made against your car insurance, your provider will inform you and seek your account of events. You can access your claims history by contacting your provider or the Claims and Underwriting Exchange (CUE) database. If you dispute a claim, promptly contact your provider, give an honest account, and follow their complaints process.
Failing to report any accident, however minor, to your insurer can result in severe repercussions, including policy voidance, future insurance difficulties, and potential refusal of coverage against claims. Legally, you must report accidents to your insurer; non-compliance could lead to legal penalties for driving without valid insurance. Always adhere to your policy's terms, promptly report incidents, and provide honest details, regardless of fault.
If scammed buying a car, immediately stop contact with the seller and gather all evidence including messages and receipts. Contact your bank or card provider to possibly reclaim funds through chargeback or Section 75 protection. Report the fraud to Action Fraud (UK's national fraud reporting centre) online or at 0300 123 2040. Inform the listing platform, like Facebook Marketplace, and alert Trading Standards if the seller runs a registered business.
If your car, purchased in the UK, doesn't meet expectations, you have consumer rights. You can raise concerns with the seller up to six years from purchase. If the fault existed at purchase, you may claim. Contact the seller promptly, outlining the issues. Different rules may apply for cars bought abroad.
If scammed, promptly gather evidence like screenshots, emails, and transaction details. Inform your bank and report to the local police. UK residents should contact Action Fraud online or via 0300 123 2040. Consult a consumer protection lawyer for further advice. Avoid personally pursuing the scammer; it's risky and potentially unlawful. Let authorities investigate. Your swift action can help protect others from similar scams.
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Temporary Car InsuranceDriving Advice