Driver trainers are being urged to warn pupils – particularly younger learners – a few sharp rise in pretend automotive insurance coverage scams promoted by way 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 price of motor insurance coverage by providing offers that seem real however go away drivers fully uninsured. The scams are sometimes marketed on platforms similar to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to economize.
Ghost brokers might present:
- Faux insurance coverage paperwork that seem legit 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 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 advantageous and 6 penalty factors.
- Automobile seizure.
- A courtroom summons that will result in an infinite advantageous and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers sometimes supply premium costs far cheaper than clients can discover elsewhere. Keep in mind, if one thing sounds too good to be true, it virtually 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 informed me there wasn’t a coverage taken out in my identify,” he informed 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 critical penalties.
In a current prosecution, 30-year-old Touqir Nasir of Luton was jailed after pleading responsible to a number of fraud costs 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 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 function in defending younger drivers by way of proactive training and by signposting trusted sources.
For extra steerage on figuring out legit insurance coverage suppliers, go to the FCA web site or BIBA web site.
This warning relies on a report from the Each day Mail printed on 20 Might 2025. You possibly can learn the unique article right here.
