- An alarming number of new drivers have been deceived by online scammers
Three in 10 young drivers have bought invalid car insurance from a ghost broker, according to the UK’s largest car insurer.
Aviva surveyed 2,000 drivers under 25 and found that 30 per cent admitted to buying fake or invalid car insurance from someone on social media, a scam known as ghost brokering.
Ghost brokers pose as legitimate insurance brokers and often target those struggling to find affordable coverage, particularly younger drivers.
What they are actually selling may look like a legitimate insurance policy, but it is usually worthless.
Aviva found that 89 per cent of young drivers who bought insurance on social media experienced serious consequences.
Web threat: many scammers use social networks to take advantage of unsuspecting drivers
One in 10 (nine per cent) said their details (e.g. age, address) were misrepresented in the policy, meaning it was invalid.
Almost a fifth (22 per cent) had a claim rejected for not having adequate insurance.
Just over one in six (17 percent) said they have been stopped by police for driving without insurance.
Aviva has stopped or scrapped almost 17,000 policies in 2024 alone due to application fraud such as ghost brokering.
The insurer has identified nearly 7,000 cases linked to investigations of application fraud and open ghost brokerage during 2024.
Aviva said anyone buying insurance through social media is almost certainly dealing with a ghost broker, making any “insurance” purchased worthless.
Driving without valid insurance puts drivers at risk of receiving an unlimited fine, being banned from driving, or having their vehicle impounded.
Aviva’s Katriona Cunningham said: “Young drivers aged 17-25 are the first generation to grow up with social media as an integral part of their daily lives.
‘It’s understandable, then, that when looking for car insurance, 30 per cent of young drivers say they turn to social media.
“However, ghost brokers actively target young drivers on social media platforms, offering cheap but worthless car insurance that puts the young driver at risk of being left uninsured.”
How to stay safe from ghost brokers
- Beware of super cheap deals that are too good to be true
- Check that the broker is registered with the British Association of Insurance Brokers and the Financial Conduct Authority.
- Check that the broker is listed with the Automobile Insurers Office.
- Legitimate brokers use social media, but avoid those that only operate on these online platforms.
- Beware of poor spelling, vague details, and messaging app requests
- Anyone who believes they have been a victim of ghost brokering or other fraud can report their concerns to CheatLine or by calling 0800 422 0421.
