Fake online insurance ads exploiting car crash victims, says Helen

Helen Morgan MP has hit out at online platforms for “disregarding basic morality” after highlighting how car crash victims are being misled by fake insurance company ads.

Helen said the Government needed to urgently crack down on ‘paid ad spoofing’, warning that drivers were being exploited and in some cases left with eye watering bills.

Leading a debate in Parliament on the issue on Wednesday (22nd April), Helen shared the experience of one North Shropshire driver who unknowingly fell victim to a spoofed online advert after a road traffic accident, a situation which she said reflected a growing and concerning pattern.

Paid ad spoofing involves fraudsters paying for online adverts designed to imitate legitimate insurers, complete with logos and phone numbers, so that they appear at the top of search engine results.

Drivers searching for their insurer - often shaken and vulnerable at the roadside - are diverted to rogue firms posing as their insurance company.

Helen Morgan, MP for North Shropshire, said: “Victims are reassured, have their vehicle recovered, repairs arranged and hire cars booked, and may even be encouraged to attend medical appointments.

“At no stage are they told they are not dealing with their insurer. The costs involved are frequently excessive and later pursued through the courts. If those claims fail, it is the driver who can be left liable.”

Helen raised concerns about the involvement of fully regulated no win, no fee law firms in pursuing claims, questioning how such practices could be considered ethical.

In her speech, Helen also criticised search engines and online platforms for hosting misleading adverts with little apparent oversight, and a disregard for “basic levels of morality”, arguing that tech companies should be required to carry out checks on insurance related advertising.

In 2024, £1.16 billion in fraudulent general insurance claims were identified, with motor insurance accounting for more than half of the total.

Helen told the Westminster Hall debate: “Fraud is not a victimless crime. These costs are ultimately paid by honest motorists through higher premiums.

“The experience leaves people shaken, financially exposed and distrustful, while driving up costs for everyone else.

“Minsters need to work with regulators to tackle unethical practices within the legal sector, strengthen scrutiny of online advertising, and ensure powerful tech companies are held accountable for the harm caused by content they host.”