What is Car Insurance Fraud?

Posted on January 3, 2023

Insurance fraud costs the industry in Ireland over €200 million every year. It doesn’t just have an impact on insurance companies; it also results in car insurance increases for drivers too. 

What is Insurance Fraud? Insurance Fraud

Insurance fraud presents itself in many different forms. Whether it’s exaggerating injuries to receive higher compensation or providing inaccurate information to receive a cheaper premium, they are all considered as fraud and may result in a prosecution. The number of fraudulent car insurance claims has increased in recent years which have been a contributing factor to the rising cost of insurance in Ireland

Types of Car Insurance Fraud


Non-disclosure is where an applicant either purposely or accidentally omits details about their car or their driving history. This may range from something small such as where you park your car at night to failing to disclose that you were involved in a car accident. 

By not disclosing details about your driving history it may bring down the cost of your car insurance premium, but in the event of a claim, your insurance policy may become invalid and you may also be liable to prosecution. 


Fronting is pretending that someone else is the main driver of a car in order to bring down the car insurance premium. 

Car insurance can be expensive for new drivers who haven’t built up a no claims bonus or who have never had a policy in their own name before. In many instances, adding a named driver to a policy can bring down the cost of car insurance.

However it is illegal to name someone else as the main driver on a policy where you will be driving for the majority of the time. Drivers are often unaware that this is fronting and that it is illegal. In many instances, parents buy a car insurance policy in their own name, and add their child as a named driver. However, if their child drives the car more frequently than their parents, they need to have a policy in their own name. 

Insurance companies are usually made aware of the situation when the named driver is involved in a collision and they investigate the situation further. This can lead to claims not being paid out or a prosecution for the driver for driving without insurance. 

False Injury Claims

In recent years the number of fraudulent claims has increased. This has had a knock-on effect on the cost of insurance in Ireland. This has especially been the case with injury claims where claimants either make up or exaggerate their injuries in order to receive more compensation. 

Whiplash claims are 5 times higher in Ireland than in the UK and have become a major problem for the insurance industry. This is due to the difficulty in disclaiming dishonest claims and the high payout amounts for such injuries. 

Staged Accidents

This involves claiming for an accident that never actually happened or was staged in order to receive compensation. This is usually done by moving a car that has already been damaged to a fake crash site. The insurer then pays the bill for the repairing costs. 

Car Insurance Fraud FAQs

What is car insurance fraud in Ireland?

Car insurance fraud in Ireland is any attempt to deceive an insurance company into receiving a benefit or payment that is not rightfully due. This can include providing false information on an insurance application, staging an accident or theft, or exaggerating the extent of damages or injuries to receive a larger payout.

How common is car insurance fraud in Ireland?

It is difficult to accurately determine the prevalence of car insurance fraud in Ireland, as many instances may go undetected. However, it is a problem that affects the insurance industry globally, and insurance companies in Ireland take steps to prevent and detect fraudulent activity.

What are the consequences of car insurance fraud in Ireland?

Committing car insurance fraud in Ireland is a criminal offence and can result in fines, imprisonment, and a criminal record. In addition, if an individual is found to have committed insurance fraud, their insurance policy may be voided, and they may have difficulty obtaining coverage in the future.

How can I protect myself from car insurance fraud in Ireland?

There are several steps you can take to protect yourself from car insurance fraud in Ireland:

  • Only do business with reputable insurance companies and brokers
  • Make sure to accurately and fully disclose all relevant information on your insurance application.
  • Do not exaggerate the extent of damages or injuries in the event of an accident.

If you’re aware of any insurance fraud, please report it to insurance confidential on 1890 333 333

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