‘Crash for cash’ scams are a growing cause for concern for both insurers and drivers. Not only does this type of fraud cause a headache for insurers and motorists by driving up premiums, it causes physical harm to innocent people.  

What is ‘crash for cash’? 

‘Crash for cash’ is a type of insurance fraud where motorists deliberately cause or fake car accidents.  

They then often file false or exaggerated injury and property damage claims with their insurance, which results in higher payouts from insurers and increases premiums for all policyholders.  

The end goal of this type of scam is to make an insurance claim and pocket the cash.  

How do fraudsters create a ‘crash’? 

Generally, this type of fraudster aims to drive recklessly to cause an accident purposefully.  

The end goal is to create a situation where the innocent party is either viewed as ‘at fault’ or unable to react quickly enough to prevent the collision so the scammer can claim on the insurance. 

Many ‘crash for cash’ schemes involve drivers abruptly braking in front of other vehicles to increase their chances of being hit in the back. Others use the tactic of changing lanes suddenly to cause a collision upon entry.  

How does ‘crash for cash’ affect insurers and premiums? 

‘Crash for cash’ scams have a wide-reaching impact on insurers and policyholders. These schemes often result in exaggerated or fabricated claims for vehicle damage, personal injury, and even lost earnings.  

Insurers are forced to pay large sums on fraudulent claims, sometimes without conclusive proof that an accident was genuine. The Insurance Fraud Bureau (IFB) estimates that fraudulent personal injury claims cost the insurance industry approximately £392 billion annually. These payouts contribute to higher claim costs. 

Because insurers have to cover the costs of these false claims, they often have no choice but to raise premiums across the board. This means that all policyholders—whether they’ve been directly involved in a scam or not—end up paying more for their car insurance. It increases the average cost of insurance, affecting millions of drivers who bear the financial burden.  

Some drivers might feel their insurance premiums are unjustifiably high, and the perception that insurance companies are slow to pay out claims—partly because of fraud investigations—can harm an insurer’s reputation. 

‘Crash for cash’ cases often require extensive investigations to uncover fraud, which strains an insurer’s resources. Dedicated fraud teams, legal departments, and claims adjusters must spend significant time and money looking into suspicious incidents, reviewing evidence, and fighting false claims in court if necessary. This diverts resources away from legitimate claims, delaying service for honest customers.   

How big is the problem? 

The IFB has predicted roughly 170,000 motor insurance claims from October 2019 to the end of 2020. It also estimates that a shocking 69,500 personal injury claims were likely to be due to suspected ‘’crash for cash’’ schemes concocted by fraudsters. 

The figures are sobering, but we still can’t say if they’re accurate, as many motorists unknowingly become involved in a fraudster’s ‘crash for cash’ scheme.  

If more people knew how to spot an insurance scam, recognise the signs and report these suspicions, the statistics could be even higher than what’s currently known. 

How to spot a ‘crash for cash’ scam on the Road. 

Spotting the warning signs of a ‘crash for cash’ scam can save you from a lot of hassle.  

Here, we’ll list the red flags that you should keep an eye out for to avoid being sucked in by a ‘crash for cash’ scam: 

• Erratic driving behaviour, such as a vehicle in front of you braking for no apparent reason or slowing down suddenly, could be a sign of a fraudster. If it is a scammer, you will usually spot this on clear roundabouts or slip roads. Stay calm, keep back and create more space to avoid hitting them. 

• Fraudsters may also exaggerate injuries or involve ‘passengers’ who suddenly appear at the scene after the crash, all to inflate the claim. Invisible conditions like whiplash, which are very hard to prove, are popular among fraudsters staging or encouraging accidents. Trust your instincts and gather as much information as possible at the scene to ensure that your insurer can carry out the investigation with as much evidence as possible. 

• If the other driver is overly eager to avoid involving insurance claims or mentions settling in cash immediately, it can be a fraudster attempting to avoid scrutiny. If you’re ever in doubt, report the incident as normal to your insurer and let them handle the investigation. 

• Equally, on the other end of the spectrum, if a driver is too calm or tries to steer the process without police or insurance involvement, you should be wary.  

• The other vehicle may have damage unrelated to the accident, suggesting it was already there. Keep calm, exchange details with the other driver and involve the relevant authorities, such as insurers and police, immediately – just as you would with a normal accident.  

• Be wary of certain tactics like ‘Flash for Crash’. This is where a driver flashes their lights to give you the right of way and then intentionally drives into you. Always proceed with caution and don’t rely solely on another driver’s signals. 

Of course, these scenarios won’t always be a sign that you’re involved with a ‘crash for cash’ scheme.  

For example, driving erratically can be a sign that a driver is under the influence or has fallen ill at the wheel so suddenly that they lose control of the vehicle. Mentioning insurers is also something that perfectly well-meaning motorists might do at the scene of an accident to prove they’re willing to cooperate despite the awful circumstances.  

What should I do if I’m targeted by ‘crash for cash’ scammers? 

If you suspect you’ve been targeted in a ‘crash for cash’ scam, you should try to stay as calm as possible. Keep the following advice in mind and follow these steps: 

• The first step is always to ensure your safety. Move to a safe location if needed, and call emergency services if anyone is hurt or significant damage to the vehicles involved. 

• Gathering evidence at the scene is one of the most important things you can do. Use your phone to take photos of the damage, gather any evidence from your dash cam. You’re going to need images and videos showing the position of both vehicles and the surroundings. Note the details of the other driver and any witnesses, but avoid confrontations or accusations. Instead, keep the exchange polite and factual.  

• It’s also wise to notify the police if something feels off—like exaggerated claims of injury or if the other driver seems unusually calm and prepared. Reporting the incident promptly ensures there’s a record if fraud is suspected. 

• Lastly, contact your insurer as soon as possible. Tell them of any suspicions, and share any evidence you’ve gathered, from phone pictures to dash cam videos. Insurers have dedicated teams to investigate fraudulent claims and can advise you on the next steps, so your evidence will help them to work out exactly what occurred at the scene. 

How do I report fraudsters if I suspect a ‘crash for cash’ scam? 

If you are worried that you’re being targeted by scammers, you can report it to the following organisations: 

• The Insurance Fraud Bureau (IFB) both online or by calling the Cheatline on 0800 422 0421.  

• Crimestoppers online or by calling 0800 555 111. 

As experts in motor insurance, we’re here to help and ensure you receive the support you need. If you’d like to learn more about reporting scams, read our comprehensive guide: ‘How To Report Insurance Fraud’. 

If you’re ever unsure or suspect that you may have been targeted, don’t hesitate to reach out to us or your insurer for guidance. Find the correct claims number on our claims website and get in touch if you need any assistance with your report or have any questions about insurance scams.