Everyone needs car insurance to legally drive in the UK. But some criminals take advantage of that to scam innocent motorists like you.
We don’t want these criminals to cost you money or ruin your confidence as a driver. Here’s how to protect yourself from four of the most common car insurance scams.
Ghost brokers
Ghost brokers are criminals who pose as insurance brokers. They claim they can find you a cheap policy, but then they take out a policy in your name with all the details changed to make it as cheap as possible. They then sell the policy on to you at inflated cost.
The policy will be invalid, because things like your driving experience aren’t correct. Sometimes the scammers cancel the policy and pocket the refund as well.
Either way, you would be driving without valid insurance, which can get you into trouble with the police.
Some ghost brokers don’t take a policy out for you at all. They just ask you for money up front… then disappear.
Protect yourself from ghost brokers
We don’t work with brokers at Marshmallow. So if an individual tries to sell you a Marshmallow policy, you can be sure it’s a scam.
The safest and most common way to buy car insurance in the UK is to get quotes directly from an insurer, or from a trusted comparison site.
If you do speak to an insurance broker, it’s best to run a check on them. All brokers in the UK have to be registered with an organisation called the Financial Conduct Authority (FCA). You can use a broker’s name to check if they’re registered with the FCA. If they’re not registered, they’re not allowed to sell you insurance.
Flash for cash
Flash for cash, or cash for crash, is when a fraudster deliberately causes a car accident. They then make it look like your fault so they can claim compensation on your insurance.
They usually do this by flashing their lights at you when you’re waiting to pull out at a junction, which is an informal way to tell someone you’re letting them pull out. But then they don’t stop, so you crash into them.
Because you pulled out at a junction, insurers are likely to decide that you were at fault. The fraudster then claims for made-up injuries. Often for a whole car-full of made up passengers as well.
There has also been an increase in London of fraudsters using mopeds in crash for cash scams. The bikers lie in wait then crash with your car deliberately.
Protect yourself from flash for cash
The Highway Code says: “Never assume that flashing headlights is a signal inviting you to proceed. Use your own judgement and proceed carefully.” It’s good advice. Don’t let yourself be pressured into moving from a junction if you don’t feel it’s safe.
If you are involved in an accident, make notes and take as many photos as you can. Swap insurance details with the other driver but don’t be drawn into conversations or discuss who’s to blame.
It’s stressful having a bump and it can be hard to remember details. A dashcam can be helpful. If there are businesses nearby you could ask if they have CCTV of the accident. You can send that to your insurer to help with the claim too.
Slam-on fraud
Another scam where the fraudster causes an accident to make an inflated claim from your insurer. They’ll suddenly ‘slam on’ their brakes so that you drive into the back of them.
More sophisticated slam-on fraudsters will disconnect their brake lights so you get no warning before they stop. They then sneakily reconnect them after the crash.
Insurers usually find you at fault if you go into the back of someone, so the fraudster will then claim on your insurance for (you guessed it) fake injuries and a few fake passengers.
Protect yourself from slam-on fraud
Leave yourself plenty of braking room between you and the car in front. Even more when the weather’s bad.
Dashcam footage can be particularly useful for protecting you from slam-on fraud because it can show things like brake lights not working, or a driver repeatedly braking to try to cause a crash.
Take as many photos of the accident as you can and tell your insurer if you think the other driver has caused the crash on purpose.
Compensation call scams
We’ve already mentioned it can be hard to recall the details after an accident. But what about when someone phones you asking about an accident you don’t even remember happening?
It’s a scam. The fraudsters cold call people to say they have heard there’s been an accident and they can help them claim compensation. This type of scam is sometimes called ‘claims farming’.
If you then say you have been in an accident they can use your details to make fake claims and pocket the money.
Protect yourself from compensation scams
If you get a call from someone who says they can get you compensation after an accident but you haven’t been in an accident, just end the call.
If you have been in an accident, only your own insurer should be calling you to talk about it. Don’t discuss it with anyone else who calls you and don’t give them any of your personal details.
How to report car insurance scams
All motorists are affected by car insurance scams. Even if you’re not the direct victim, false claims push up the cost of car insurance for all of us.
Fight back against the scammers. The Insurance Fraud Bureau is an organisation that works to stamp out these common cons. If you think you’ve been scammed you can report it on their Cheatline, either online or by phone.
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