Ghosts clogging car insurance machine
INSURERS are warning drivers to be wary of deals that look too good to be true. Fleur Lewis, head of fraud detection and prevention at GoCompare car insurance, said: “Younger, less experienced drivers pay more to insure their cars – which makes them particularly susceptible to adverts for heavily discounted insurance. “Ghost brokers often operate on social media – especially Facebook and Instagram – where they often use imagery and logos of established insurers to enhance their believability.” Drivers can save money by shopping around for cover but if the insurance offered is significantly less than you could get on a comparison website, it should ring alarm bells. Fake insurance can have major consequences. Lewis added: “The financial consequences for victims can be long-lasting. The minimum penalties for driving uninsured are a fixed fine of £300 and six penalty points, which for newly qualified drivers could mean they lose their licence. “Drivers receiving six penalty points within the first two years of passing their test will have their licence revoked.” Ultimately, this affects all drivers by increasing the cost of insurance premiums for everyone. It’s a growing problem, which the insurance industry and law enforcement agencies are working together to tackle.
Between 2014 and 2017, Action Fraud – the national fraud and cyber reporting centre – received more than 850 reports of ghost broking.
This is likely to be the tip of the iceberg and there are potentially thousands of motorists driving around unaware they are not insured.
Ben Fletcher, director of the Insurance Fraud Bureau, said: “A third of all our investigations are focused on bringing ghost brokers to justice.
“When buying car insurance, we urge the public to make sure they’ve done the right checks, so they are confident they are taking cover from a trusted source. Consumers can also help by reporting any suspicious activity to IFB’s Cheatline.”