5 ways to spot a ghost broker offering fake car insurance policies


Halloween is approaching – so be sure to don’t fall prey to a ghost broker. Young adults, together with many cash-strapped college students, are sometimes focused by these fraudsters, who promote car insurance policies which seem temptingly low cost.

People aged 17-29 are the most definitely age group to report falling sufferer to fake car insurance scams, in accordance to figures from Action Fraud.

Often, it’s solely after they come to make a declare that they realise their coverage isn’t definitely worth the paper it’s written on, and actually they haven’t any legitimate insurance in any respect.

Ghost brokers promote policies which can be solid, or the main points might have been falsified to artificially make the coverage seem cheaper. Or, in some instances, a real coverage could also be taken out – however then cancelled quickly after, if you’ve already parted along with your money.

If you’re uncertain whether or not you’re coping with one in all these ghouls, listed here are some potential warning indicators to think about so you’ll be able to keep away from fake car insurance scams…

1. Is the coverage too low cost?

Young individuals have a tendency to pay larger insurance premiums for car insurance due to larger accident charges amongst this age group. If the coverage is considerably cheaper that others you have got been supplied, think about whether or not it’s a sensible worth, or if it’s too good to be true.

2. How did you hear about it?

Ghost brokers might use social media and messaging apps to get in contact – then after they’ve taken your cash they vanish.

3. Where did the broker get the quote from?

Whic ? says authentic brokers have direct relationships with insurers and don’t depend on comparability web sites to discover quotes. Additionally, the buyer group says, it’s typically towards comparability web sites’ phrases for anybody however an precise buyer to use it.

4. Can you contact them?

Which? says a huge crimson flag ought to be raised if the corporate doesn’t appear to exist wherever aside from on a easy social media profile.

The City of London Police additionally warns individuals to be cautious of brokers utilizing solely a cellular quantity or e-mail as a means of contact. The power suggests contacting the insurance firm immediately to confirm the broker’s particulars.

5. Have you checked the registers?

The police recommend checking the Financial Conduct Authority or the British Insurance Brokers’ Association web sites for authorised insurance brokers – register.fca.org.uk and biba.org.uk. People also can verify whether or not their car is insured on the Motor Insurance Database web site – ownvehicle.askmid.com.

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