Industry News

Scammers who try to sell cheap insurance deals but issue policies that aren't worth the paper they're written on.

Ghost Brokers

April 2021

Typically the scam works in one of two ways:

  • Policies are bought from legitimate insurance companies using false information and then doctored before being sold on to unsuspecting customers
  • Fake policy documents designed to look like they have been issued by legitimate insurance companies are created and sold on to customers

The consequences of buying a fake policy:

  • Your car may be seized by police
  • Pay at least £150 to get your car back from the pound
  • You'll pay a fixed penalty notice of £300
  • You'll have to buy valid insurance
  • You could be liable for any damage you cause while driving without insurance, which could include compensation if you injure someone

How to beat the fraudsters:

To ensure you aren’t caught out, carry out essential checks before taking out a policy. This includes:

  • Checking the party you are dealing with has a legitimate website, a UK phone number and a business address
  • If buying through a broker, check they’re registered with British Insurance Brokers’ Association (BIBA)
  • Check your insurance advisor is registered with the Financial Conduct Authority (FCA)
  • If buying directly through an insurer, check they’re a member of Motor Insurers’ Bureau (MIB)

Source: Insurance Fraud Bureau