Car insurance scam: Drivers ‘run the risk’ of buying fake policies because they are cheap

The IFB says with restrictions easing and millions returning to the road, many drivers may be looking for new insurance. 

They warn with many facing financial difficulty, some drivers may resort to desperate lengths to secure affordable policies. 

Stephen Dalton, Head of Intelligence and Investigations at the IFB said drivers will “naturally” look for the best deals but issued a critical warning. 

He said motorists “run the risk” of falling victim to a scan unless drivers were willing to conduct proper checks. 

READ MORE: Car insurance scammers to return in a ‘big burst’

Scammers may also design fake policy documents to look like they have been issued by legitimate firms to catch out unsuspecting and inexperienced drivers. 

Most fake car insurance policies are advertised through social media and online adverts and younger drivers are most commonly affected. 

A YouGov survey found one in five drivers has seen suspicious car insurance adverts on social media accounts with one in three aged between 18 and 24. 

The fake policies make it appear that a driver has cover in p;ace but insurance firms will not accept it when making a claim.

Scott Goodliffe, spokesperson for Adrian Flux insurance said the chances of suing a ghost broker for losses “would be next to zero”.

He said: “You would have to try to sue the ghost broker to recoup your losses but these people are basically crooks and I assume the success rate would be next to zero.”

To avoid being caught out by a car insurance scam, experts at the IFB have warned drivers should take “extra efforts” to check whether the policy is genuine before buying. 

If a driver is purchasing through an Insurance Broker, road users should check whether they are registered with the British Insurance Brokers Association (BIBA). 

Legitimate insurers should appear as a registered member of the Motor Insurers' Bureau (MIB). 

Mr Goodliffe said: “You also need to check all your personal information is shown on the policy documents. 

“We send clients a quote and a statement of facts which includes the client’s information. Make sure everything is disclosed on that and keep it for reference in the future.” 

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