Motorists are being warned over a new car insurance scam, Ghost brokers are fraudsters who sell drivers apparently cheap motor insurance deals which are actually bogus. Some victims have found themselves inundated with over a hundred different policies arriving at their home, which of course can cause them serious distress. It’s unknown how and why some homes are targeted, and so keeping your details safe is extremely important.
So how does ghost broking work? Typically, it can go one of two ways. The first is where policies are bought from legitimate insurance companies but use false information which is then doctored before being sold on to customers. Alternatively, fake policy documents could be designed to look like they have been issued by legitimate insurance companies.
The problem with buying a fake policy is that you actually have no insurance at all – meaning consequences that come about due to accidents or incidents would be the same as if you were completely uninsured. On top of this, driving without insurance (or a fake policy, which is technically the same thing) means your car can be seized by police and you will pay a fixed penalty notice. It will cost you a sum of money as well as needing to buy a valid insurance policy before you can get your car back. Plus, any damage you cause when you’re driving without insurance will have to come out of your pocket, that includes compensation if you injure someone. This can cost a massive amount of money and isn’t something the average driver is going to be able to afford.
There are a number of ways you can protect yourself from these fraudsters, and save yourself a whole lot of time, money and hassle in the long run. First of all, don’t buy insurance from somewhere that doesn’t seem quite right. Newsagents, social media and people you meet down the pub might offer a good deal but if it’s fake you’re simply wasting your money (not to mention inadvertently committing a crime by accidentally driving uninsured. Use price comparison sites to search legitimate insurers, or if you want to go direct use a well-known company such as Belairdirect car insurance. If you want to double check anything and make sure it’s all legit, then look online to check your insurer is a member of the Motor Insurers’ Bureau (MIB).
Right now, ghost broking is mainly affecting the UK, however it’s a scheme that could quite easily sweep other countries. It particularly targets young males who are keen to get cheap insurance since their premiums are almost always the highest. Be sure to keep your wits about you, don’t take a chance and snap up a deal that seems dubious to save yourself some cash. Because you could end up paying far more if you’re caught by the police or if you need to make a claim.
Had you ever heard of ghost broking? What advice would you give to anyone who’s looking for cheaper car insurance?