Driver trainers are being urged to warn pupils – particularly younger learners – a couple of sharp rise in pretend automotive insurance coverage scams promoted via social media.
Including to the rising listing of on-line scams for drivers to concentrate on, 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 fully uninsured. The scams are usually marketed on platforms reminiscent of Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to economize.
Ghost brokers could present:
- Pretend insurance coverage paperwork that seem authentic however provide no cowl.
- Actual insurance policies bought with false info to cut back prices—rendering them void within the occasion of a declare.
- Real insurance policies which are 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 increase consciousness, together with presents 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 wonderful and 6 penalty factors.
- Automobile seizure.
- A court docket summons that will result in an infinite wonderful and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers usually provide premium costs far cheaper than clients can discover elsewhere. Keep in mind, if one thing sounds too good to be true, it virtually definitely is.”
One younger driver, Wayne Simpson, shared his expertise after shopping for insurance coverage through social media. “We referred to as up Aviva and so they advised me there wasn’t a coverage taken out in my title,” he advised Sky Information. His paperwork regarded 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 severe penalties.
In a latest prosecution, 30-year-old Touqir Nasir of Luton was jailed after pleading responsible to a number of fraud expenses for posing as an insurance coverage dealer through Instagram. He was sentenced to at least one yr in jail and had £16,000 in money confiscated.
The ABI reviews the typical automotive insurance coverage premium for Q1 2025 was £589—down from final yr however nonetheless 23% larger 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 through financial institution switch.
- Contact the insurer instantly if something in regards to 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 via proactive schooling 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 relies on a report from the Every day Mail printed on 20 Could 2025. You possibly can learn the unique article right here.
