Large uptick in fake car insurance policies flagged by solicitor as increasing number of owners seek legal advice
A motoring defence solicitor has warned drivers to be on their guard against a growing ‘ghost broker’ scam after seeing a 300 per cent increase in motorists seeking legal advice over fake car insurance policies.
Georgina Power, Associate Solicitor in the Transport and Motoring Defence Law team at Rothera Bray, says many drivers only discover they are uninsured after being stopped by police, having their vehicle seized or facing prosecution.
Ghost brokers pose as legitimate insurance providers, selling fake, manipulated or cancelled policies, often through social media and messaging apps. Victims frequently receive convincing-looking documents carrying the branding of genuine insurers, leaving them believing they have valid cover.
Power said the scam often targets younger motorists struggling with rising insurance premiums, tempting them with deals that appear significantly cheaper than mainstream providers.
She warned that drivers remain legally responsible for ensuring they are insured, even if they have been the victim of fraud. Those caught driving without valid insurance could face six penalty points, a £300 fixed penalty, vehicle seizure, court action or even disqualification.
To reduce the risk, motorists are urged to check that insurers and brokers are authorised by the Financial Conduct Authority, verify policies directly with insurers and confirm their vehicle is listed on the Motor Insurance Database.
“If an insurance deal looks too good to be true, it probably is,” said Power. “Taking a few extra checks before buying cover could save motorists from serious legal and financial consequences.”
