Driver trainers are being urged to warn pupils – particularly younger learners – a few sharp rise in faux automotive insurance coverage scams promoted by means of social media.
Including to the growing record 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 value of motor insurance coverage by providing offers that seem real however depart drivers fully uninsured. The scams are sometimes marketed on platforms comparable to Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to save cash.
Ghost brokers could present:
- Faux insurance coverage paperwork that seem professional however provide 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 increase 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.
- Car seizure.
- A court docket summons which will result in an infinite advantageous 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. Bear in mind, if one thing sounds too good to be true, it nearly actually 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 advised me there wasn’t a coverage taken out in my title,” he advised 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 current 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 through Instagram. He was sentenced to at least one 12 months in jail and had £16,000 in money confiscated.
The ABI reviews the common automotive insurance coverage premium for Q1 2025 was £589—down from final 12 months however nonetheless 23% larger 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 straight if something in regards to 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 relies on a report from the Every day Mail printed on 20 Might 2025. You’ll be able to learn the unique article right here.
