Driver trainers are being urged to warn pupils – particularly younger learners – a couple of sharp rise in pretend automobile insurance coverage scams promoted by means of social media.
Including to the rising listing 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 value of motor insurance coverage by providing offers that seem real however depart drivers fully uninsured. The scams are usually marketed on platforms comparable to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to save cash.
Ghost brokers could present:
- Faux insurance coverage paperwork that seem reputable however supply no cowl.
- Actual insurance policies bought with false info to scale 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 gives claiming “100% legit insurance coverage assured to beat any worth.”
The dangers are extreme. Driving with out legitimate insurance coverage may end up in:
- A £300 tremendous and 6 penalty factors.
- Car seizure.
- A courtroom summons that will result in a limiteless tremendous and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers usually supply premium costs far cheaper than clients can discover elsewhere. Bear in mind, if one thing sounds too good to be true, it virtually actually 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 instructed me there wasn’t a coverage taken out in my identify,” he instructed 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 automobile 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 by way of Instagram. He was sentenced to at least one 12 months in jail and had £16,000 in money confiscated.
The ABI reviews the common automobile insurance coverage premium for Q1 2025 was £589—down from final 12 months however nonetheless 23% greater 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 take care of 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 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 function in defending younger drivers by means of proactive schooling and by signposting trusted sources.
For extra steerage on figuring out reputable insurance coverage suppliers, go to the FCA web site or BIBA web site.
This warning is predicated on a report from the Every day Mail printed on 20 Could 2025. You may learn the unique article right here.
