Think twice before buying cut-price insurance after a motoring solicitor reported a 300% increase in motorists caught driving with fake insurance policies.
Solicitor Rothera Bray says it has seen a sharp rise over the past year in drivers seeking legal advice after unknowingly buying cover from so-called “ghost brokers”. Ghost Brokers are fraudsters who pose as legitimate insurance providers before selling fake, altered or cancelled policies.
According to Georgina Power, associate solicitor in the firm’s Transport and Motoring Defence Law team, many victims only realise something is wrong after being stopped by police or having their vehicle seized.
“We’ve seen a 300% increase in people seeking legal advice after discovering they’ve been driving with fake insurance policies that they knew nothing about,” she said.
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“These are not people deliberately trying to avoid paying for insurance. They’re victims of increasingly sophisticated fraud.”
For van drivers, the consequences could be particularly painful, especially for those who depends on their vehicles for the main part of their work. Drivers suddenly be unable to work if their van is seized or they lose their licence, as a result of the ghost policies.
Power warns that being the victim of a scam does not automatically prevent prosecution.
If the insurance policy is invalid, drivers can still face six penalty points, a £300 fixed penalty, vehicle recovery costs and, in more serious cases, court action or a driving ban.
The increase comes as insurance premiums remain high, creating opportunities for fraudsters to lure motorists with offers that appear significantly cheaper than legitimate quotes.
Ghost brokers commonly advertise on social media and messaging apps, often supplying convincing-looking insurance certificates carrying the branding of genuine insurers.
Power is urging motorists to carry out a few simple checks before buying cover, including verifying that a broker is authorised by the Financial Conduct Authority and confirming the policy directly with the insurer where possible.
“If a deal looks too good to be true, it probably is,” she said.
“Taking a few extra minutes to check who you’re buying from could save drivers from serious legal and financial consequences later.”
