- Shocking number of new motorists have been taken in by scammers online
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 30 per cent admitted to buying invalid or fake car insurance from someone on social media, a scam known as ghost broking.
Ghost brokers pose as legitimate insurance intermediaries, and often target those that struggle to find affordable cover, particularly younger motorists.
What they actually sell may look like a legitimate insurance policy but is typically worthless.
Aviva found that 89 per cent of young drivers who bought insurance on social media experienced serious consequences.
Web threat: Many fraudsters use social media to take advantage of unsuspecting drivers
One in 10 (nine per cent) said their details (e.g. age, address) were misrepresented on the policy, meaning it was not valid.
Almost a fifth (22 per cent) had a claim rejected due to not having proper insurance.
Just over one in six (17 per cent) said they were stopped by police for driving without insurance.
Aviva has stopped or removed nearly 17,000 policies in 2024 alone due to application fraud such as ghost broking.
The insurer has identified nearly 7,000 cases linked to open ghost broking and application fraud investigations during 2024.
Aviva said that 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 an unlimited fine, driving ban or having their car seized.
Katriona Cunningham, of Aviva, said: ‘Young drivers aged 17–25 are the first generation to grow up with social media being an integral part of their daily lives.
‘It is understandable, then, that when looking for car insurance, 30 per cent of young drivers said they turn to social media.
‘However, ghost brokers are actively targeting young drivers on social media platforms, offering cheap-but-worthless car insurance that puts the young driver at risk of being uninsured.’
How to stay safe from ghost brokers
- Beware of super-cheap deals that are too good to be true
- Verify the broker by checking they are registered with the British Insurance Brokers’ Association and Financial Conduct Authority
- Check the broker is listed in the Motor Insurers’ Bureau
- Legitimate brokers do use social media, but avoid those only operate on these online platforms
- Watch out for bad spelling, vague details, and messaging app requests
- Anyone who thinks they have been a victim of ghost broking or other fraud can report their concerns to CheatLine or by calling 0800 422 0421.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.