Driver trainers are being urged to warn pupils – particularly younger learners – a couple of sharp rise in faux automotive insurance coverage scams promoted by means of 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 depart drivers utterly uninsured. The scams are sometimes marketed on platforms akin to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to save cash.
Ghost brokers might present:
- Pretend insurance coverage paperwork that seem professional however supply 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 elevate consciousness, together with provides claiming “100% legit insurance coverage assured to beat any value.”
The dangers are extreme. Driving with out legitimate insurance coverage may end up in:
- A £300 high quality and 6 penalty factors.
- Automobile seizure.
- A courtroom summons that will result in a limiteless high quality and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers sometimes supply premium costs far cheaper than prospects can discover elsewhere. Bear in mind, if one thing sounds too good to be true, it nearly definitely is.”
One younger driver, Wayne Simpson, shared his expertise after shopping for insurance coverage by way of social media. “We known as up Aviva and so they advised me there wasn’t a coverage taken out in my identify,” 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 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 by way of Instagram. He was sentenced to at least one yr in jail and had £16,000 in money confiscated.
The ABI experiences the common automotive insurance coverage premium for Q1 2025 was £589—down from final yr 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 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 function in defending younger drivers by means of proactive training and by signposting trusted sources.
For extra steerage on figuring out professional insurance coverage suppliers, go to the FCA web site or BIBA web site.
This warning is predicated on a report from the Each day Mail printed on 20 Could 2025. You’ll be able to learn the unique article right here.
