As many as 20,000 drivers in the UK could be getting behind the wheel without valid motor car insurance after falling victim to ‘ghost brokers’ that are preying upon their need for discount car insurance, insurance fraud experts recently warned.
The insurance fraud scheme, operated by dishonest car insurance brokers targeting motorists looking to cut back on their motoring costs, target classes of drivers such as non-native English speakers, younger Brits facing massive car insurance rates, and pensioners. Some of these motorists might have paid cash for worthless policies, leaving them vulnerable in the event of a road traffic accident.
Commonly trading outside supermarkets and through newsagents and websites, ghost brokers often place printed notices in car parks by placing them underneath vehicle windscreen wipers. The fraudsters will typically advertise acting as middlemen, working on behalf of a real provider in order to secure cover for the driver.
Instead, some of these ghost brokers will instead issue a completely fabricated policy in exchange for cash. Others will take out valid insurance cover, but use a stolen debit or credit card number to pay the insurer while pocketing the hapless driver’s money.
Insurance fraud investigators have also discovered that some of these ghost brokers will apply for cover from a reputable insurer on behalf of their customer, but change their personal details, such as address or age, in order to get a more favourable price quote. However, this can result in a customer driving without valid cover and could see any insurance claims denied by their hoodwinked insurer, which could be disastrous in an expensive road traffic accident.