The news: UK insurers detected £1.34 billion of fraudulent insurance claims in 2025 — up 14% on the year before, even though the number of cases actually fell. The figures come from the Association of British Insurers (ABI), reported by InsurTech Eye on October 15, 2026.
The story behind the number matters more than the number itself: fraudsters are attempting fewer but far bigger scams, with staged accidents up 30% and application fraud up 24%. As the ABI warns, fraud "pushes up costs for everyone" — honest policyholders help foot the bill. Here's what the data shows.
In this guide
The fraud numbers, in brief
- Total detected claims fraud: £1.34 billion in 2025, up 14% from £1.18 billion the year before.
- Number of cases: 93,900 — down 2.7% on 2024. Fewer cases, much bigger ones.
- Average fraudulent claim: £14,300, the second-highest level on record.
- Detected daily: more than 250 bogus claims every day — and the ABI says that is likely just the tip of the iceberg.
Motor insurance is the prime target
Motor insurance remains by far the biggest battleground: 55% of all detected fraud cases were motor claims, with 51,900 bogus motor claims worth £625 million uncovered in 2025 — fewer but more expensive cases. Property insurance showed the same pattern: cases fell 6.2% to 17,700, yet the value rose 3.4% to £201 million, pushing the average property fraud claim to a record £11,400.
If you're a UK driver, fraud sits alongside repair-cost inflation and claims volumes as one of the structural forces shaping your renewal. For context on where motor premiums are heading more broadly, see our guide to the 2026 UK premium turning point.
How the scams work: exaggerated vs staged
The ABI breaks fraud into tactics, and two matter most for consumers:
- Exaggerated loss (26,900 cases): the most common — a genuine incident happens, but the claimant deliberately inflates the cost. Think padded repair bills and inflated injury claims.
- Contrived incident and loss (about 5,600 cases): incidents deliberately staged or manufactured in order to claim. The fastest-growing category, up 30% year-on-year — classic crash-for-cash fraud, getting more sophisticated.
Staged accidents can touch honest drivers directly: you can be the other car in someone else's scam.
Application fraud: the £1.8 billion warning
Separate from claims fraud, insurers prevented £1.8 billion of application fraud — cases where people deliberately misrepresented or withheld information to get cover or cheaper premiums. Detected application fraud cases rose 24% year-on-year.
The direct lesson for ordinary policyholders: application fraud includes everyday misstatements — a wrong address, understated mileage, an undeclared conviction. If discovered, your policy can be voided and claims refused. Never "optimise" your application details: if you're a young driver looking for legitimate ways to lower your quote, our guide to cheap car insurance for young drivers covers the tactics that actually work without risking your policy.
What fraud does to your premium
Insurers are businesses: fraud losses land in the loss ratio, and loss ratios land in everyone's pricing. The ABI is explicit — fraud "pushes up costs for everyone," and the Insurance Fraud Bureau notes it costs honest consumers when household budgets are already tight.
No one can quote a precise "fraud surcharge" on your renewal, but the direction is unambiguous: a 14% jump in detected fraud value, plus whatever goes undetected, puts structural upward pressure on premiums across motor, property, and travel lines. Expect two things at renewal: more scrutiny of application details (which helps honest customers) and no quick return to falling prices, since fraud losses are one more reason insurers keep pricing firm.
How to protect yourself
- Be completely honest on applications. With application-fraud detection up 24%, small misstatements are far more likely to be caught — and a voided policy is catastrophic if you later need to claim.
- Consider a dashcam. The best defence against staged-accident fraud is video evidence of what actually happened.
- Know the crash-for-cash warning signs: a car braking sharply for no reason, passengers who seem unhurt but later claim injury, or pressure to settle at the scene. Call the police if a crash feels staged.
- Report suspected fraud. Report staged accidents to the Insurance Fraud Bureau's Cheatline — protecting your own claim history also protects your future premiums.
- Don't buy "too good to be true" insurance. Ghost broking — fake policies sold on social media, often targeting young drivers — is itself fraud. Check the Financial Conduct Authority register and buy from regulated firms.
Frequently asked questions
How much did insurance fraud cost the UK in 2025?
Insurers detected £1.34 billion of fraudulent claims in 2025, up 14% from £1.18 billion the year before. Cases actually fell 2.7% to 93,900 — the rise is entirely down to fraudsters targeting bigger payouts, with the average bogus claim at £14,300.
Which type of insurance has the most fraud?
Motor insurance, by a wide margin — 55% of all detected cases (51,900 cases worth £625 million). Property fraud is also rising in value, with the average bogus property claim at a record £11,400.
Does insurance fraud really raise my premium?
Yes, indirectly. Fraud losses increase insurers' claims costs, and those costs spread across all policyholders as higher premiums. The ABI describes it as pushing up costs for everyone.
What happens if I lie on an insurance application?
With detected application fraud up 24% year-on-year, misstatements are increasingly likely to be caught. Consequences include a voided policy, refused claims, and difficulty getting cover in future — in serious cases, a criminal conviction. The original reporting is InsurTech Eye, October 15, 2026, based on the Association of British Insurers' 2025 fraud data.