Car insurance may cost more from a reputable dealer than so-called ghost brokers, but buying a fake policy can have devastating consequences. Drivers who purchase fake schemes will not have valid car insurance coverage and may even face police action. Car insurance is a legal requirement and any driver who has purchased a fake policy will be seen as uninsured. Police may even decide to issue a £ 300 fine to drivers with invalid policies and may even seize the vehicle.
These ghost brokers usually target unsuspecting drivers, offering cheap premiums and budget costs.
They can use individuals from social media forums and even pubs because they claim to act as intermediaries between the driver and the company.
Phantom brokers have several ways to operate, but each will make sure that the driver does not have an official or legal car insurance policy.
Scammers can purchase a valid policy, and once the driver pays the broker for the service, they will cancel the policy and receive a refund.
Criminals may also decide to forge insurance documents to trick drivers into believing they are signing real forms.
Brokers can also induce insurance providers to offer drivers a better deal by lying about important information to reduce prices.
Fraudsters will set a policy and will not declare high-risk tokens, such as penalty points or driving offenses. They can write down the actual driver details and make the policy valid.
Action Fraud data revealed more than 850 cases of ghost brokering and have been reported to the action group over the past three years.
The average total loss of the blows was £ 631,000, with individual drivers losing an average of £ 769 each when they jumped to sign the budget and ultimately fake policies.
Action Fraud claims that social media is one of the key tools for ghost brokers to operate within and warn that men in their 20s are often highly targeted.
London City Police Chief Inspector Andy Fyfe said the policies given by ghost brokers are not worth the paper they are written on.
He added: “In addition to the personal injury suffered by victims, ghost brokers also cause financial damage to the insurance industry, increasing the cost of insurance premiums for all drivers.
"While a cheap car insurance offer may seem tempting, falling victim to phantom brokerage will eventually cost you a lot more in the long run – both in terms of money and your license."
RAC asks drivers to check if a broker is listed on the British Association of Insurance Brokers website to check their credibility before buying a policy.
They say that if a potential broker is not listed, doesn't have their own website, and only discusses an email address or mobile email address, the policy can be a scam.
Drivers can check if the car is safe in the car insurers database.
However, the service will only show if your car has been insured and will not reveal if the broker has changed your data to reduce premiums and invalidate your policy.
Drivers should contact Action Fraud and the Insurance Fraud Bureau to report the situation and hear advice on what to do next.