Motorists looking for cheap car insurance are being conned into buying fraudulent policies through a scam known as ‘ghost broking’. Policies bought through these conmen will be not valid if you have an accident. Find out how to spot and avoid this scam.
We are aware of ‘ghost broking’ firms running websites or placing adverts offering cheap car insurance. In return for the promise of cheap cover, customers are asked for an upfront cash payment.
These firms act as middle-men, as they then contact real insurance providers on behalf of customers to arrange cover. However, they fraudulently change the customer’s details to keep the premiums artificially low.
The customer then ends up paying for a policy which is likely to be based on someone of a different age, job, motoring record, or even name. As it does not match the customer’s details, it is useless. So the customer ends up with invalid cover meaning they are uninsured.
You should not use these firms or give them any money.
What to do if you have been contacted by a firm offering cheap insurance:
- Check the broker firm is authorised
Be wary of anyone who approaches you offering to arrange cheap motor insurance. Authorised firms are unlikely to contact you out of the blue.
Only deal with firms that are listed on our Register[1] as authorised to do business. Ask for the firm for its ‘FRN’ or ‘firm reference number’ and contact details and see if these match the records on our Register.
- Search our lists of scammers
Search our lists of unauthorised firms and individuals to avoid doing business with, although be aware that their names are likely to change regularly. - Contact us
If you have been approached or think you are a victim of this type of fraud contact our Consumer Helpline[2].