What is crash for cash?

You may have read about crash for cash scams in the press, but do you know what they actually are?

Crash for cash is described by The Association of British Insurers as ‘scams run by fraudsters who stage accidents, sometimes with innocent road users, to profit from fraudulent insurance claims’.

These scams can not only put drivers at risk, but also cost the insurance industry millions of pounds a year. This in turn, according to The AA, ‘costs honest policy holders something like £50 on every annual premium’.

How many UK drivers know what crash for cash is?

Tempcover asked 2,000 UK drivers how much they knew about crash for cash scams in a survey [1].

• Over half (54%) said they knew exactly what it was and how it worked, while 34% had heard the phrase but weren't entirely sure what it meant.

That still leaves 11% of drivers who'd never heard of it at all, so there's clearly more to do to close that awareness gap.

The same survey found that nearly 1 in 10 UK drivers (9%) have witnessed a suspected crash for cash incident happening to someone else on the road, and 3% say they've personally been the victim of one.

Younger drivers are hit hardest: 18 to 24 year olds are far more likely to say they've personally been targeted, at 26% compared with the 3% national average.

Drivers in London and inner-city areas report similarly high exposure, with roughly half saying they've encountered a suspected scam in some form, compared with around three in 10 drivers overall.

How does crash for cash work?

Although there are many types of car insurance fraud, there are three main routes crash for cash scammers will choose.

The staged accident

This is when two fraudsters work together to crash their own vehicles into each other, away from witnesses and innocent bystanders. They’ll then work together to put in a claim.

The induced accident

This is when a fraudster targets an innocent driver. They will slam on their brakes - sometimes even with their brake lights disconnected - to force the car behind them to crash into their rear. This means they can attempt to make a claim, as Rule 126 of the Highway Code states drivers are expected to maintain a safe stopping distance and this means the driver who rear-ends the vehicle is often held liable.

The ghost accident

This is when a false claim is made for an accident that never actually happened.

Fraud is always evolving with people finding new ways to try to cheat the system. You should look out for the flash for cash routine, where a fraudulent driver flashes their headlights to let you out at a junction and then intentionally accelerates into you.

There has also been a rise in the number of moped crash for cash scams in recent years. In this scenario, a moped driver or scooter ride slightly bumps into you while you’re driving slowly. They’ll then ask to take a picture of your driving licence or insurance documents and attempt to take out motor insurance policies in your name using the details on them.

The Guardian says: ‘In one case highlighted by the IFB, more than 40 insurances policies were taken out in a victim’s name using the information they had handed over. It was only discovered when they started to receive letters in the post from insurers.

In another case, criminals hijacked a victim’s insurance policy and made false claims.

While anyone can be a victim of the scam, women who are driving alone or with children are particular targets, as are elderly people.’

Would you recognise a crash for cash scam?

You may think you know what a crash cash scam looks like, but it's much harder to be confident when driving - especially as accidents can happen.

Our survey found:

• 54% of UK drivers are confident they'd recognise a crash for cash scam if it happened to them
• 14% feel very confident they'd recognise the scam
• 40% are somewhat confident

Meanwhile, 30% say they wouldn't feel confident at all, and a further 16% simply aren't sure.

In other words, nearly half of UK drivers doubt they'd have the ability to spot a staged accident while it's unfolding, which is exactly why knowing the warning signs in advance matters.

How to spot the signs of a crash for cash scam

There are a number of red flags or warning signs that you might be driving near people involved in a crash for cash scam. Keep an eye out for the following:

• Erratic behaviour - Is a car driving at an awkward speed, slowing down at random times or hovering near a junction? They might be having issues or trying to find their way, but equally could be planning a scam. It’s best to keep your distance.
• The condition of the vehicle - Is the car in front of you missing their brake lights or does it have some pre-existing damage at the rear? Although they may be on their way to get the issue fixed, they could also be planning to suddenly stop, leaving you to drive into their back. If their driving is giving cause for concern, increase your stopping gap.
• Driver behaviour - Does anyone in a nearby car keep looking at you (even though you don’t know them) or does it look like they could be preparing to do something unscrupulous? Stay safe and try your best to avoid them.

What to do if you think you’ve been a victim of a crash for cash scam?

If you have been involved in a car accident and have suspicions it may have been a crash for cash scam, you should do the following after pulling over in a safe space (if you are able to):

• Stay calm - Although a car accident is a stressful experience, you need to remain cool. Check nobody is seriously injured and use the proper channels (the insurers) to resolve the issue. Some fraudsters may try to intimidate you or settle for cash there and then. Remember, most people after a crash may be shaken but a fraudster might appear more confident or unusually prepared. Try to hold firm and say you will contact your insurer after exchanging details. Don’t admit any blame or liability at the scene.
• Keep a record of everything - Make sure you document your surroundings, the other vehicle involved and note down the number of people in the other car. It may also be worth asking for any eyewitness’s contact details.
• If you have a dash cam, this could provide vital evidence of a staged accident when it comes to examining the claim.
• Contact your insurer - If anyone is hurt, you should call 999 immediately. If everyone is safe, exchange details and contact your insurer. If you suspect a scam, try to tell the insurer about this discretely and also contact the police.
• Once you are safely home, you could contact the Insurance Fraud Bureau’s free, anonymous and confidential CheatLine on 0800 422 0421.

What do UK drivers think would stop crash for cash scams?

We also asked drivers what they thought would be most effective at putting fraudsters off staging a scam.

The top answers were:

1. Tougher criminal sentences and mandatory prison time for fraudsters (49%)
2. Permanent driving bans for anyone convicted of staging an accident (47%)
3. Installing a rear-facing or 360-degree dashcam (43%)
4. Installing a forward-facing dashcam (40%)
5. Automatically blacklisting fraudsters from ever getting car insurance again (34%)
6. Insurers using advanced AI data to flag suspicious claims immediately (21%)

Dashcams clearly stand out as something drivers feel they can control themselves, alongside calls for tougher consequences for the fraudsters behind these scams.

Why crash for cash costs everyone

Crash for cash doesn't just put drivers at risk on the road, it hits every driver's wallet too.

Our survey found that 91% of UK drivers think it's unfair that honest policyholders' insurance costs may rise because of fraudulent claims like crash for cash, with 67% strongly agreeing.It's a view that's echoed by The AA's estimate that fraud adds around £50 to the average annual premium.

Keep protected with Tempcover

Whatever car you’re driving, you need to ensure you’re properly covered. If you’re driving a borrowed car on a Tempcover temporary car insurance policy, you’ll still have comprehensive coverage, meaning you can get the support and protection you need from our underwriters if you are the victim of a scam.

Sources

[1] OnePoll survey of 2,000 UK drivers, carried out 25 to 30 June 2026, commissioned by Tempcover.

https://insurancefraudbureau.org/en/insurance-fraud/crash-for-cash

https://www.abi.org.uk/products-and-issues/topics-and-issues/fraud/crash-for-cash/

https://www.cityoflondon.police.uk/police-forces/city-of-london-police/areas/campaigns/crash-for-cash-fraud/

https://www.rac.co.uk/drive/advice/know-how/car-insurance-scams-and-frauds/

https://www.theaa.com/driving-advice/legal/crash-for-cash

https://www.allianz.co.uk/insurance/magazine/car-magazine/how-to-steer-clear-of-crash-for-cash-scams.html