Driver trainers are being urged to warn pupils – particularly younger learners – a couple of sharp rise in pretend automotive insurance coverage scams promoted by means of social media.
Including to the growing checklist 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 price of motor insurance coverage by providing offers that seem real however depart drivers utterly uninsured. The scams are usually marketed on platforms comparable to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to economize.
Ghost brokers could present:
- Pretend insurance coverage paperwork that seem official 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 can 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 affords 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 superb and 6 penalty factors.
- Automobile seizure.
- A courtroom summons which will result in a vast superb 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 nearly definitely is.”
One younger driver, Wayne Simpson, shared his expertise after shopping for insurance coverage through social media. “We referred to as up Aviva and so they instructed me there wasn’t a coverage taken out in my title,” he instructed Sky Information. His paperwork seemed 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 prices for posing as an insurance coverage dealer through Instagram. He was sentenced to 1 yr in jail and had £16,000 in money confiscated.
The ABI stories the typical automotive 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 cope with brokers registered with the Monetary Conduct Authority (FCA) or British Insurance coverage Brokers’ Affiliation (BIBA).
- By no means pay in money or through 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 position in defending younger drivers by means of proactive schooling and by signposting trusted sources.
For extra steering on figuring out official insurance coverage suppliers, go to the FCA web site or BIBA web site.
This warning relies on a report from the Each day Mail revealed on 20 Might 2025. You may learn the unique article right here.
