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Insurance fraud

More about insurance scams like 'crash for cash' and 'ghost brokers'

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Induced motor accidents (crash for cash)

This is where a fraudster intentionally brakes very hard for no reason, making it almost impossible for the driver behind to avoid crashing into the back of them. They then claim against the innocent motorist which could include compensation for false or exaggerated injuries to people allegedly sat in the criminal's car at the time of the accident.

What to do if you think you’ve been involved in crash for cash

  • Tell us as soon as possible if you're suspicious about the accident.
  • Make sure you get the full contact details for the other driver (known as the third party) including their land line telephone number and insurance details.
  • Write down the vehicle make, model and registration number.
  • Accurately record the damage caused by the accident to all of the vehicles involved and any other damage to the vehicles that was already there before the accident.
  • Get the names of any passengers in the vehicle. If possible make a note of what they look like, where they were sitting when the incident happened and any injuries they appear to have.
  • Get the names and addresses of any independent witnesses.
  • Take photographs or a video of the scene of the accident if it's safe to do so.
  • Observe the driver and passengers' behaviour, for example are they overly friendly, aggressive or impatient?
  • Observe how the driver deals with you. Did they read from a document or hand you a document with their details already recorded on. Keep safe any documents handed to you as these may assist the investigation of the claim.
  • Note if there was anything suspicious about the accident, for example did the driver brake suddenly for no apparent reason?

Illegal Insurance Intermediaries or 'Ghost Brokers'

At LV= we sell some of our insurance policies through brokers and intermediaries but we only deal with authorised firms.

Unfortunately, fraudsters sometimes target the places where you look for a quote online. When searching for a good deal on your insurance, be aware that if it seems too good to be true then it probably is.

An illegal intermediary may claim to be a legitimate broker, work for an insurer, or know someone in the business. They'll often claim to offer discounts you can't get anywhere else but the quotes and insurance they arrange aren't based on your true personal details or circumstances, and cover is often paid for using a stolen credit card or false bank details. This can mean that your insurance isn't valid so your car could be seized by the police.

How you can spot illegal insurance intermediaries:

  • Beware of adverts on free classified websites - often they'll only give a mobile number and first name to contact for a quote. It's also common for communication to be by text or free messaging services or apps, like Blackberry Messenger or WhatsApp.
  • They'll ask for payment in cash or by bank transfer - most legitimate insurers and brokers won't accept these forms of payment.
  • You don't get all your insurance documents, just the certificate - when a policy is set up by a legitimate insurer or broker you'll get an insurance certificate, a schedule, a credit agreement (if applicable), a proposal and a policy booklet for the product you bought.
  • They may suggest you check you have valid insurance cover by entering your vehicle registration on - however the appearance of a vehicle on the MID database doesn't necessarily mean there's a genuine insurance policy in force.

To avoid buying fraudulent cover for your vehicle you should:

  • contact us directly or use a legitimate insurer, or broker
  • check the company you're dealing with is authorised by the Financial Conduct Authority by entering their name on the Financial Services Register

Most UK insurers are also members of the Association of British Insurers (ABI) and most brokers are members of the British Insurance Brokers Association (BIBA).

False No Claims Bonus (Discount) certificates

A claim free driving record can give you significant discounts on your car insurance when you supply your new insurer with proof of your No Claims Bonus (NCB) sometimes referred to as No Claims Discount (NCD).

Proof of NCB or NCD is usually a letter or certificate from your previous insurers, or your renewal invite. It'll show the number of years claim free driving you've achieved and they won't charge you for supplying it.

However, there are firms operating on line who offer to produce false No Claims Bonus (Discount) certificates for a fee.

Providing fraudulent documents to your insurer can invalidate your insurance and affect any future policies you buy.

If you're approached by anyone attempting to sell you a falsified document or you know of any website offering this, please call us on 0800 633 5760 or email

If you suspect fraud

If you have an LV= policy:

Call us:
0800 633 5760

Email us:

If you don't have an LV= policy:

Report your suspicions to the Insurance Fraud Bureau

Life insurance fraud

Find out about types of life insurance fraud and the people fraudsters target:

  • Pension liberation fraud
  • Safeguarding vulnerable adults

More information on life insurance fraud

How financial crime affects you

Find out about financial crime and tips to stop you becoming a victim:

  • How we fight financial crime
  • Tips to avoid becoming a victim of financial crime

More information on fighting financial crime

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