Vehicle scam: motorists warned against new insurance scams - the signs you need to look out for

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Scammers are tricking accident victims into paying unexpected fees 🚨
  • Motorists are being warned about scam firms posing as insurers, leading to unexpected fees
  • Fraudulent companies pay for online ads that mimic legitimate insurers, tricking accident victims
  • Callers unknowingly sign up for costly services, believing they are dealing with their insurer
  • Victims may face bills of thousands of pounds, with one case exceeding £50,000
  • The IFB advises caution, urging drivers to verify contact details before making a claim

People involved in motor accidents are being warned that they could end up thousands of pounds out of pocket by unknowingly signing up for the services of a company whose online ads closely mimic those of their insurer.

The Insurance Fraud Bureau (IFB) has stated that individuals attempting to contact their insurance company to file a claim may accidentally reach a third-party firm, thinking they're speaking with their insurer.

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This can lead to hefty fees that would otherwise be covered by their policy. But how exactly do scams like this work, and what can you do to avoid falling victim to them? Here is everything you need to know.

(Photo: Pexels)(Photo: Pexels)
(Photo: Pexels) | Pexels

How to spot the scam

The IFB said dishonest firms may pay for advertisements designed to closely resemble those of legitimate insurers. These firms may appear in mobile phone searches, encouraging people to call quickly.

During the call, the company may use vague language to make it sound like they are the insurer or suggest an affiliation, according to the IFB.

The caller is then asked for personal details to receive "support services," such as a replacement vehicle, and potentially file a claim.

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Although this could affect any insurance customer, those involved in a road traffic collision are especially vulnerable, as they may be shaken after the accident and not thinking as clearly, the IFB said.

People may also assume their motor insurance covers everything, but if they don't realise they're not speaking with their insurer, they could unknowingly sign up for multiple services. It may take weeks before they realise the charges, the IFB warned.

Responsibility for the fees varies. If the other driver is at fault, the firm may seek reimbursement from their insurer for the cost of its services.

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But if the insurer disputes some of the charges, the person who contacted the firm may still be liable for certain costs. If the other driver is not at fault, the person who unknowingly contacted the firm is responsible for covering the costs, the IFB said.

In one case, it reported that an individual was pursued for more than £50,000 in unexpected fees.

Jon Radford, head of intelligence, investigations and data services at the IFB, said: “Unscrupulous firms will deliberately pay for search engine ad results that misrepresent genuine insurers.

“Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything.”

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How to avoid being scammed

Here are some tips from the IFB, a not-for-profit organisation which acts as a central intelligence hub for its industry members, to help insurance customers to avoid misleading ads:

  1. Keep your insurer’s contact details written down or saved on your phone.
  2. Download your insurer’s app as this usually has customer service support functionality.
  3. If searching for your insurer online, go on the insurer’s website to obtain contact details.
  4. If you are viewing a sponsored ad result, check the URL and phone number before sharing any personal information and agreeing to claims services.
  5. If anyone has concerns relating to paid-ad spoofing, they should tell their insurer and contact the IFB’s confidential CheatLine online or via 0800 422 0421.

Have you or someone you know ever encountered a scam like this? Share your experiences in the comments below and let us know your thoughts on how to stay safe from these fraudulent tactics.

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