Driver trainers are being urged to warn pupils – particularly younger learners – a few sharp rise in faux automobile insurance coverage scams promoted by way of social media.
Including to the growing record 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 value of motor insurance coverage by providing offers that seem real however go away drivers fully uninsured. The scams are sometimes marketed on platforms reminiscent of Fb, Instagram, SnapChat, and TikTok, and goal younger drivers determined to save cash.
Ghost brokers could present:
- Faux insurance coverage paperwork that seem authentic however provide no cowl.
- Actual insurance policies bought with false data to cut 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 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 fantastic and 6 penalty factors.
- Automobile seizure.
- A courtroom summons that will result in a limiteless fantastic and driving ban.
Karl Parr, Claims Technical Director at AXA UK, suggested: “Ghost brokers sometimes provide 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 informed me there wasn’t a coverage taken out in my title,” he informed Sky Information. His paperwork regarded 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 automobile 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 by way of Instagram. He was sentenced to 1 yr in jail and had £16,000 in money confiscated.
The ABI studies the common automobile 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 straight 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 steering on figuring out authentic insurance coverage suppliers, go to the FCA web site or BIBA web site.
This warning is predicated on a report from the Every day Mail printed on 20 Could 2025. You possibly can learn the unique article right here.
