The Rise of Staged Vehicle Accidents

Over the 2025/26 Christmas and New Year period, the Insurance Fraud Bureau (IFB) received approximately 30 online fraud allegations. Alarmingly, all but two involved staged vehicle thefts, with some cases escalating to vehicles being deliberately burned out.

Contributing factors leading to perpetrators’ submitting false claims to their insurer, include mechanical failures or difficulty selling their vehicles. But the underlying issue in many cases appeared to be financial strain during the holiday period. What we’re seeing isn’t just a seasonal trend. It’s part of a growing pattern of motor insurance fraud in New Zealand, with a specific rise in staged theft and falsified loss claims

Staged Vehicle Theft on the Rise: What Data Told Us

While we await the release of official 2025 insurance fraud data, a look back at the previous year’s statistics already signalled this trend was gaining momentum.

In 2024, insurers recorded:

• 698,239 motor vehicle insurance claims across New Zealand
• 79,250 potentially fraudulent claims, more than 11% of the total
• An estimated $216,772,140 in financial loss due to suspected motor fraud

Motor claims have long been the most frequently targeted insurance product, and 2024 was no exception. While not every fraudulent case involved a faked theft or staged fire, vehicle-related scams made up a substantial portion of detected fraud.

Stolen vehicle claims, in particular, remain a key focus area. ICR (Insurance Claims Register) data showed:

• 18,865 stolen vehicle claims lodged in 2024
• Total loss value: approximately $123,032,176
• Based on detection rates, up to $11.8 million in fraud was prevented

These numbers make it clear that even before the 2025 holiday spike, vehicle fraud, including false theft reports and deliberate damage to trigger a claim, was becoming increasingly prevalent.

How Insurance Fraud Costs YOU

Motor insurance fraud doesn’t just impact insurers, it raises premiums for every honest policyholder.

Between 2020 and 2024, insurers processed nearly 4.8 million motor claims, with 479,873 identified as potentially fraudulent. The estimated cost of these dishonest claims? $1.4 billion; money that ultimately gets recovered through higher costs for the everyday New Zealander, that’s you.

While the total number of claims dropped in 2024, likely due to fewer major weather events compared to 2023, the percentage of suspected fraud remained high at 9.58%. In other words, fewer claims didn’t mean less fraud. Dishonest behaviour simply became more concentrated and, in many cases, more calculated.

Why Would Someone Stage a Theft?

From the IFB’s recent case submissions, some common motivators include:

• Mechanical failure or costly repairs the owner can’t afford
• Difficulty selling the vehicle on the private market
• Financial pressure over the holiday season
• A desire to “upgrade” through a fraudulent payout

In some cases, vehicles are burned out to eliminate evidence, making it harder for insurers to assess the true circumstances of the loss. Others are simply reported stolen after being parked in an isolated location, a tactic often used to create plausible deniability.

While the reasons vary, the result is the same: a dishonest claim that affects every premium-paying Kiwi.

Consequences for Committing Insurance Fraud

It’s important to remember that insurance fraud is a criminal offence. Consequences can include:

• Claim denial and policy cancellation
• Being flagged in the Insurance Claims Register (ICR), making future cover harder to obtain
• Legal action, fines, or even imprisonment in serious cases
• Loss of trust and reputational damage if publicly exposed

What may feel like a short-term solution to a financial problem can lead to long-term consequences that far outweigh the perceived benefit.

Be Part of the Solution

The IFB works year-round with insurers to investigate claims, and protect honest policyholders from the rising cost of fraud. But we also rely on the public to help identify and report suspicious behaviour. The allegations regarding vehicle fraud that came in over Christmas came from honest New Zealanders who cared enough to speak up

If something doesn’t look right, if a vehicle theft seems suspicious, if damage doesn’t match the story, or if you’re aware of someone making a dishonest claim,  you can report it confidentially.

Report suspected insurance fraud here:https://ifb.org.nz/report-fraud/

Every report helps us protect the integrity of our insurance system and keep costs fair for the vast majority of New Zealanders who do the right thing.

FAQs: Insurance Fraud in New Zealand

What is insurance fraud in New Zealand?
Insurance fraud in New Zealand happens when someone intentionally provides false or misleading information to benefit from an insurance claim. This includes staging car thefts, exaggerating damage, or making claims for incidents that never occurred. It’s a serious crime with financial consequences for all policyholders.

Why do people commit insurance fraud?
Committing insurance fraud is often driven by financial stress. Over the 2025/26 holiday period, the Insurance Fraud Bureau NZ received multiple insurance fraud reports involving staged vehicle thefts and deliberately damaged cars. These claims were often linked to mechanical failures, unsold vehicles, or holiday financial pressure.

What happens if someone is caught committing insurance fraud?
Those caught committing insurance fraud can face denied claims, cancelled policies, ICR (Insurance Claims Register) red flags, and potential criminal charges. Fraud is not a victimless crime,  it impacts every New Zealander paying for insurance.