Fronting
Find out more
Steer clear of dodgy tactics. Avoid car insurance fraud.
Information on this page was reviewed by our fact-checkers before it was published. Learn more about our fact checking process and our editorial guidelines.
Car insurance fraud comes in many forms, but it mostly stems from being dishonest with your insurer or faking accidents or injuries to gain financially.
For example, someone might not be truthful about their driving history to get cheaper insurance premiums. Or an opportunist could make a false claim to try and get a payout.
But whatever the motivation, the consequences could be severe, both for the culprit and for other drivers who are impacted by the costly effects of car insurance fraud.
There are several different ways to commit car insurance fraud, including:
It might be tempting to provide false information in your application to get cheaper car insurance premiums. But if insurers discover you’ve not been honest, your policy could be cancelled and any claim you make is likely to be rejected.
Sometimes you might forget to update important details, like a change of address or where your car is being parked overnight. If your details change, it’s important to tell your insurer, otherwise you could risk invalidating your policy.
This is when someone tries to claim for damage to their car that happened before they took out their policy. Some fraudsters try to buy car insurance immediately after they’ve been involved in an accident so they can make a claim.
This could be anything from hiding a car in a garage around the corner to setting it alight, sinking it into a lake or river, or even just selling it. Once disposed of, the owner pretends the car is stolen and tries to claim the money from their insurer.
A common type of car insurance fraud is exaggerating or pretending to have a neck injury after an accident to get a payout from insurers. But recent reforms are making this more difficult for fraudsters and medical evidence is now needed for all whiplash claims.
Young and inexperienced drivers pay more for car insurance. So if an older person is falsely named as the car’s main driver on the policy, this is known as fronting. It’s usually done to get lower premiums but it’s illegal and could result in a hefty fine or even a criminal record.
If you’re in an accident and decide to make up or over-exaggerate your injuries, or you lie about the damage to your car or belongings to get a larger payout, you’ll be committing insurance fraud.
Sometimes fraudsters will get together and stage an accident, whereby the two drivers are both in on the scam. They may either purposely crash into each other or work together to intentionally cause a crash with an innocent driver.
Some people try to claim injuries for imaginary or phantom passengers, who weren’t in the car at the time of the accident, in the hope of getting a second payout. But there could be serious consequences for anyone that pretends they were in an accident.
Sometimes scammers try to cheat car insurance providers by involving innocent drivers in their organised fraudulent activity.
Here we explain some of the most common scams:
If you get caught committing insurance fraud, the consequences can be serious. You could face a fine, penalty points on your licence and even criminal prosecution.
And at the very least, your policy will be voided. Any claim you make will be rejected and you’re likely to find it harder to get insurance in the future.
Unfortunately, the consequences of car insurance fraud affect honest motorists too.
As well as being put at risk on the road if you’re the victim of a staged accident, insurance scams can also leave you out of pocket.
And car insurance fraud can have a wider knock-on effect on motorists in general.
In 2020, the cost of false car insurance claims racked up £602 million according to the Association of British Insurers (ABI) - insurers then pass these costs onto other drivers through higher premiums.
To keep your car insurance legal and avoid committing insurance fraud, you need to be as accurate as possible with the information you provide.
You’ll need to tell your insurer about:
It’s also important to let your insurer know if any of your details change. Otherwise, it could be considered fraud and might mean any potential claim you make is rejected.
Be wary of too-good-to-be-true deals on your car insurance. Only buy policies from reputable insurance providers and check that they’re listed on the Financial Services Register.
If you’re involved in an accident, dashcam footage can show what really happened and provide proof of who was at fault.
Whether you’re moving, getting married or making modifications to your car, don’t forget to update your insurer.
Keep a safe distance when driving. Beware of tailgaters and look out for cars with broken brake lights that might try to stop unexpectedly in front of you.
If you’ve been in an accident, make sure you take photos and videos of the scene and any damage to the cars involved.
Make a note of how many passengers there were in the other car. Take details of the other driver, their number plate and their insurer.
If you get an unsolicited call claiming you’re owed compensation after a car accident, end the call. And if in doubt, double-check with your insurer directly.
If you think you’ve been the victim of insurance fraud, there are a few things you need to do.
Firstly, if you’ve been involved in an accident that you believe was intentional, you should contact the police. Take photos and videos, speak to witnesses and note down any details that might be useful for an investigation.
You’ll also need to contact your insurer about the accident and explain why you believe it was caused deliberately.
And if you think you’ve been sold a fake policy by a ghost broker, you can contact the Insurance Fraud Bureau (IFB) by visiting their website or calling their Cheatline on 0800 422 0421.
Find out more
Find out more
Find out more
Find out more
Find out more
Find out more
Find out more
Find out more
Find out more