Driver trainers are being urged to warn pupils – particularly younger learners – a few sharp rise in faux automotive insurance coverage scams promoted by social media.
Including to the growing record of on-line scams for drivers to pay attention to, AXA UK and the Insurance coverage Fraud Bureau have highlighted how so-called ‘ghost brokers’ are exploiting the excessive price of motor insurance coverage by providing offers that seem real however depart drivers utterly uninsured. The scams are usually marketed on platforms corresponding to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to economize.
Ghost brokers might present:
- Pretend insurance coverage paperwork that seem authentic however supply no cowl.
- Actual insurance policies bought with false data to cut back prices—rendering them void within the occasion of a declare.
- Real insurance policies which might be later cancelled by the scammer, who pockets the refund.
The Nationwide Crime Company has even launched mocked-up examples of rip-off adverts to assist elevate consciousness, together with provides claiming “100% legit insurance coverage assured to beat any worth.”
The dangers are extreme. Driving with out legitimate insurance coverage can lead to:
- A £300 high-quality and 6 penalty factors.
- Automobile seizure.
- A court docket summons that will result in a vast high-quality and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers usually supply premium costs far cheaper than prospects can discover elsewhere. Bear in mind, if one thing sounds too good to be true, it nearly definitely is.”
One younger driver, Wayne Simpson, shared his expertise after shopping for insurance coverage by way of social media. “We known as up Aviva they usually advised me there wasn’t a coverage taken out in my title,” he advised Sky Information. His paperwork seemed so actual that even a police officer believed them on the scene of a crash—till checks revealed the coverage didn’t exist.
Figures from Aviva present that round 30% of younger drivers have unknowingly bought automotive insurance coverage from a ghost dealer, and 89% of those that used social media to purchase insurance coverage confronted critical penalties.
In a current prosecution, 30-year-old Touqir Nasir of Luton was jailed after pleading responsible to a number of fraud fees for posing as an insurance coverage dealer by way of Instagram. He was sentenced to 1 12 months in jail and had £16,000 in money confiscated.
The ABI reviews the common automotive insurance coverage premium for Q1 2025 was £589—down from final 12 months however nonetheless 23% increased than two years in the past—highlighting the monetary strain that scammers are exploiting.
To keep away from falling sufferer, AXA UK recommends:
- Keep away from shopping for insurance coverage from social media or messaging apps.
- Solely cope with brokers registered with the Monetary Conduct Authority (FCA) or British Insurance coverage Brokers’ Affiliation (BIBA).
- By no means pay in money or by way of financial institution switch.
- Contact the insurer immediately if something concerning the coverage feels suspicious.
With fraud and cybercrime on the rise—together with social media hacking and impersonation scams—ADIs can play a key position in defending younger drivers by proactive training and by signposting trusted sources.
For extra steerage on figuring out authentic insurance coverage suppliers, go to the FCA web site or BIBA web site.
This warning is predicated on a report from the Each day Mail printed on 20 Could 2025. You may learn the unique article right here.
