Driver trainers are being urged to warn pupils – particularly younger learners – a couple of sharp rise in pretend automobile insurance coverage scams promoted via social media.
Including to the growing checklist 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 go away drivers utterly uninsured. The scams are sometimes marketed on platforms equivalent to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to save cash.
Ghost brokers might present:
- Pretend insurance coverage paperwork that seem reliable however provide no cowl.
- Actual insurance policies bought with false data to scale 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 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 nice and 6 penalty factors.
- Car seizure.
- A courtroom summons which will result in an infinite nice and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers sometimes provide premium costs far cheaper than clients can discover elsewhere. Keep 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 referred to as up Aviva they usually advised me there wasn’t a coverage taken out in my title,” he advised Sky Information. His paperwork appeared 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 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 at least one yr in jail and had £16,000 in money confiscated.
The ABI stories the common automobile insurance coverage premium for Q1 2025 was £589—down from final yr however nonetheless 23% increased than two years in the past—highlighting the monetary stress 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 instantly 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 via proactive schooling and by signposting trusted sources.
For extra steering on figuring out reliable 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’ll be able to learn the unique article right here.
