Published: 18 November 2025
FOR INTERMEDIARIES ONLY
Truth matters: How to spot and stop motor fraud
“Fraud motor misrepresentation is all about providing false or misleading info during the insurance process. For insurers and brokers, it can lead to incorrect policy decisions, financial losses, and damage to our reputations. Spotting and preventing these are key to keeping trust intact and making sure everyone gets the right coverage.”
Liz Banner, Head of Policy Validation, Allianz UK.
Misrepresentations, risks, and how to avoid them
Intentional misrepresentation of vehicle details
This happens when someone alters the details about their vehicle to get a lower premium or better terms e.g. make, model, or condition.
Risks:
- You might face underwriting errors and claims disputes.
- Customers could possibly see their policies cancelled or claims denied.
How to avoid it:
- Encourage customers to be straight about their vehicle info.
- Double-check details and explain why honesty makes claims smoother.
Non-disclosure of driving history
This happens when customers leave out past driving incidents or violations on their insurance application.
Risks:
- Brokers might end up offering the wrong coverage, which can lead to liability issues.
- Customers could face higher premiums or denied claims.
How to avoid it:
- Stress the importance of them sharing full driving records.
- Use detailed forms and explain why full details matters.
- Encourage customers to be open about their driving history for better coverage.
Misunderstanding policy terms
This is when customers don’t fully grasp the terms and conditions of their policy, leading to unintended slip-ups.
Risks:
- Misunderstandings can damage trust and lead to disputes.
- Customers might face coverage gaps or denied claims.
How to avoid it:
- Break down policy terms simply and make sure customers get it.
- Encourage questions and offer resources to help them understand their coverage.
- Regular training to keep your team ready to assist.
Fraudulent claims processing
This involves submitting false or exaggerated claims to get payouts that aren’t deserved.
Risks:
Brokers could face legal trouble and a damaged reputation. Customers risk legal action and losing coverage.
How to avoid it:
- Strict checks for claims and train staff to spot red flags.
- Promote honesty and ethics in all dealings.
- Advise customers on the legal risks of fraud and keep communication open for any claim questions.
By being open and honest, brokers and customers can steer clear of fraud risks and keep insurance simple, safe, and trustworthy.
More information
We understand the importance of protecting our brokers and their customers against fraud. Discover our podcast, videos, articles and resources which contain advice on the different types of fraud, and how to spot and prevent scams. Read our fraud awareness page for brokers to help you and your customers stay safe.
