Fake car insurance brokers are appearing out of thin air, experts warn, stating that these so-called ‘ghost brokers’ are attempting to lure those looking for discount car insurance in the face of the rising cost of motoring.
The siren call of cheaper car insurance can sometimes blind us to any underhanded dealing, especially with car insurance rates rocketing higher and higher. However, experts warn that you need to make sure that before you take out a policy that your broker is on the up-and-up, since if a deal seems too good to be true, it may very well be.
As many as 20,000 drivers may actually be behind the wheel without valid insurance, according to the national fraud reporting centre for the UK, Action Fraud. Ghost brokers has emerged as a new threat to the insurance industry, especially as falsified whiplash claims and crash-for-cash scams work to push up insurance premiums even further.
Criminals select their marks carefully, specifically singling out those motorists searching for ways to manage the costs of driving in the current rocky economic landscape. Using insider knowledge of the industry, these fraudsters will specifically focus their efforts on geographical locations where premium prices are elevated.
Younger drivers are especially vulnerable to these scammers, especially those who are non-native English speakers, since their knowledge of how the insurance industry operates may be lacking. All too many of these unfortunate souls have been taken advantage by these fraudsters, with the results being that the cash they spent on what they thought was a valid policy has instead gone right into the pockets of these criminals.