Car Insurance: New campaign to spook targets of ‘ghost brokers’

Car Insurance: New campaign to spook targets of ‘ghost brokers’
Motorists are being warned they could have their car crushed if they fall prey to so-called ‘ghost brokers’ when looking for car insurance.

Figures show that innocent drivers have been conned out of £165,000 over the last four years by fraudsters posing as insurance brokers, leaving them unwittingly driving without cover.

Police chiefs warn that drivers with fake insurance policies also face unlimited fines, up to eight penalty points, and could be left without protection in the event of an accident.

The RAC welcomes the warning, which forms part of the Motor Insurer’s Bureau’s (MIB) Operation Drive campaign to crack down on the number of uninsured drivers on UK roads.

READ MORE: Driving without insurance — your FAQs answered

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Ghost broking is a tactic used by fraudsters to sell fake insurance policies to unsuspecting drivers.

Criminals use a variety of techniques to rip-off motorists, including providing false information to bring costs down and cancelling policies immediately to claim refunds for themselves.

Recent figures from Action Fraud found that motorists aged between 17 and 24 are most likely to fall victim to ghost brokers, attracted by cut-price deals often advertised via social media.

In the period between November 2014 and July 2018, Action Fraud received more complaints from young drivers than any other age group, with the average victim losing £912 to fraudsters.

SEE ALSO: What to do if you’re hit by an uninsured driver

Across the UK, 35 police forces are taking part in the Operation Drive campaign, which comes after a recent MIB warning that uninsured drivers don’t need to be on the road to get caught.

A new scheme operated by the MIB and the Driver and Vehicle Licensing Agency (DVLA) that cross-checks driver records is catching as many as 3,000 uninsured motorists every day.

Once owners of uninsured cars are identified they are sent advisory letters, with over five million warnings already issued since the system was introduced.

Recipients are warned to either insure their vehicle, make a SORN (statutory off-road notification) to the DVLA or risk hefty fines, penalty points and court prosecution.

Copyright Press Association 2018. Motoring News articles do not reflect the RAC's views unless clearly stated.

Did you know, you can get fined for moving out of the way of an ambulance?

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** 10% of all customers buying Car Insurance Plus with us from 1st January 2020 to 30th June 2020 paid less than £165. Based on comprehensive Car Insurance Plus, purchased direct, excluding any additional products and upgrades, with payment on an annual basis. Your premium will depend on your circumstances and the level of cover you choose.