Ghost Brokers Offering Cheap Policies Costing Young Drivers Dearly

New drivers have typically had plenty to contend with when it comes to getting started with their first vehicle. Insurance cover doesn’t come cheap, with young road users encouraged to find low-priced cars to make sure they receive the least expensive quotes or failing that, they can increase their excess or even add a second driver to their policy. It all adds up to a situation where those with a fresh, full licence are searching around for the cheapest deals, which is where problems can arise.

So-called ‘ghost brokers’ are targeting social media users, with drivers aged 17 to 24 most at risk given their increased desire to find the cheapest deal to get them on the road. The scheme works as follows; fraudsters will target young drivers using Facebook, Twitter or Instagram and employ a variety of tactics, which can include producing fake insurance documents, fabricating details or simply creating a policy and then cancelling it soon after, receiving a full refund in the process.

In all cases, the fraudsters will simply block their victim on all possible forms of communication once they’ve got taken their unsuspecting victim’s money, making it impossible for them to be contacted and leaving young drivers out of pocket and on the road with an illegitimate policy.

Detective Superintendent Peter Ratcliffe, part of the City of London Police’s economic crime directorate, says: “While offers of cheap car insurance may be tempting, purchasing car insurance through a ghost broker will end up costing you far more in the long run – both in terms of money and your licence.”

It’s far from impossible to envisage young drivers being hoodwinked by these ghost brokers, but the consequences for purchasing one of these fake policies can be severe. The Insurance Fraud Bureau warns that:

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

“It is a legal obligation to have valid car insurance,” offers Ratcliffe, “and those buying from a fraudster risk points on their driving licence, having their vehicle seized and possibly destroyed, a fixed penalty notice and being liable for claims costs if they are involved in an accident.”