Motorists: Watch Out For ‘Ghost Brokers’

We wanted to warn motorists about the latest scam on the road: ‘ghost brokers’ who are targeting young motorists with fake insurance policies.

Crimestoppers, the Insurance Fraud Bureau and the City of London Police recently launched a campaign to draw attention to these bogus insurance brokers, who will usually prey on the likes of new, young drivers: those traditionally faced with the highest premiums.

The policies are offered at eye-catchingly low rates, usually online, by the roadside, in coffee shops and restaurants and even around university campuses.

Money for Nothing

Those who buy the policies are in fact handing over money for absolutely nothing, and unwittingly becoming uninsured drivers in the process. The consequences of this could include being fined, landing a criminal record and having the car seized by the police. Not to mention having to foot the bill for any damage caused or personal injury compensation should they cause an accident whilst driving without insurance.

Buying a car insurance policy from a ghost broker is clearly an expensive mistake to make. So how can you avoid a ghost broker and ensure you are legally insured?

How to Avoid a Ghost Broker

1. If it’s too cheap to be true, then it probably is. If you can’t believe how the price you’ve been quoted is so much lower than elsewhere, then those alarm bells should start ringing straight away. Steer well clear.

2. Choose a legitimate insurance broker that appears on the Financial Conduct Authority Register and is a member of the British Insurance Brokers’ Association (BIBA).

3. Avoid paying in cash. Ghost brokers like to deal in cash so there are no digital footprints. Always choose a broker who accepts payment by credit or debit card, or who will arrange credit for monthly payments.

What to do if you Think You’ve Been Scammed by a Ghost Broker

1. Check the details of your policy. Ghost brokers will sometimes submit false information in order to reduce the premium. Scrutinise every detail, especially your date of birth and address.

2. Check the Motor Insurance Database to ensure you are genuinely covered.

3. If you think you’ve fallen victim to a ghost broker and the motor insurance policy you have paid for is not genuine, you can report it anonymously to the Insurance Fraud Bureau by calling 0800 422 0421 or online using this link.

Robert Gerrard is regulated by the Financial Conduct Authority and is a member of BIBA. We offer a comprehensive range of motor insurance policies from leading insurers, and are here to provide motorists with helpful guidance on ways to keep premiums as low as possible. For tailored advice, please get in touch.