How To Avoid Ghost Broking

How is Ghost Broking Happening?

Ghost brokers operate in a number of ways. They might use their own valid insurance documents, but change the dates and names so it looks like it belongs to you – in reality, there’s no policy in your name at all. Another tactic they use is to buy a legitimate policy, but cancel it and pocket the refund – either way, you’ll be driving around uninsured.

Many people are falling for ghost broking scams, due to the deals they offer, but the lower-than-average prices are down to the use of fraudulent information. When purchasing a policy on your behalf, ghost brokers enter false information to make the costs cheaper. For instance, a young driver who only passed their test a few months ago could expect to pay a much higher premium than someone who’s been driving for many years. A ghost broker would lie about your age and other details (like your address, your car, your job), to bring down the cost, without your knowledge. In these cases, although a legitimate policy has been purchased, the inaccurate information used to get a lower price completely invalidates the policy. 

When insurers discover fake policies, they typically cancel or void the insurance – and a history of voided policies will likely affect your ability to secure legitimate insurance in the future.

Driving without insurance means risking a whole host of serious penalties, including having your car impounded. This is why it’s absolutely crucial to know you’re purchasing insurance with a legitimate broker, and avoid any ghost broking scams.

What Happens if You Fall For a Ghost Broking Insurance Scam?

As it stands, there’s no legal distinction between a victim of insurance fraud and someone deliberately breaking insurance laws. If you’re caught driving without insurance, the police could give you a fixed penalty of £300.00 and 6 penalty points – which is likely to make your insurance even more expensive in the future. If the case then goes to court you could receive an unlimited fine and/or be disqualified from driving entirely. 

The police also have the power to seize, and in some cases, destroy the vehicle that’s being driven uninsured. There’s actually been a significant year on year rise in the number of vehicles being seized – or impounded – in the UK, with approximately 197,000 cars being seized in the past year alone. There’s likely a partial correlation between this rise and the growing prevalence of ghost broking scams, with more and more motorists having to face the consequences of driving without insurance. 

If you’ve been targeted by a ghost broker and your car’s subsequently been impounded by the police, you’ll need to explore your options to get back on the road. Luckily, there’s such a thing as impound release insurance, to get you back on four wheels in no time, via a legitimate insurance broker. 

It’s also imperative to report the ghost broker to the police. To stop them being able to target other people, give the police all the details you possibly can about the person who sold you the fake policy. You might also want to report to Action Fraud – the National Fraud & Cyber Crime Reporting Centre – as they’ll be able to pass information about the scam to insurers, and try to prevent any further ghost broking. 

It’s really easy to fall foul of ghost broking fraudsters, and customers who’ve been scammed shouldn’t feel embarrassed. Just remember, if in doubt – check the FCA and MID, and ensure any future purchases you make are through legitimate, trustworthy brokers. Discover our award-winning temporary car insurance today.