Insurance fraud is on the increase according to the Metropolitan Police. A survey by the Insurance Fraud Bureau says fraudulent claims cost £1.2 million a year, adding on average, £50 to policyholders’ annual costs. Two of the main scams they are concerned about are accident and insurance ones. There are a few simple things you can do to minimise the chances of being stung by a scam.

Accident scams
You may become involved in an accident, your fault or otherwise, where the other party is injured or significant damage is caused to their vehicle. They may want to claim from you (through your insurer), but how genuine are they?

They may be part of a group trying to scam you and your insurers out of money. This is known as ‘Crash for Cash’. In Crash for Cash scams they purposely cause an accident and fake an injury with the intention of getting a big pay out from you. This money often then goes on to fund other criminal activities.

What can you do? If police do not become involved, try and obtain as much evidence of the accident as possible, like pictures of the damage, details of all people involved etc.

Finally always obtain vehicle insurance directly through a reputable company. We can help find the right insurer for your vehicle.

Insurance policy scams
Scammers also operate through websites or advertisements offering cheap insurance. This is known as ‘Ghost broking’. They target people on a tight budget and communities where English is not the first language.

Once you have agreed the terms and conditions, they will issue you with a fictitious policy which will be significantly cheaper than one you would have been quoted by the legitimate insurer.

In some cases, the scammer will apply to a genuine insurer on your behalf but will alter the details to get the lowest possible price. You may have agreed to these alterations, but you may also be totally unaware you are being scammed. You not only lose your money but you may find yourself uninsured on your vehicle and may only discover this when you have a accident.

Remember the old adage – if it sounds too good to be true, it probably is!

What can you do? The easiest way to avoid being taken in by an insurance scam is to contact us at Fairweather Insurance. If you have an existing policy we will give you honest, independent advice on how good it is. If you are looking for new insurance (or to renew an old policy), then we can search the whole of the market for you (including polices that are not shown on internet comparison sites) and find the most competitive one that meet your needs.

Contact us today