News

As young drivers turn to the internet is search of cheaper policies, organised criminals are carving a niche which is leaving thousands without cover.

As many as 20,000 uninsured motorists could already be on the roads after buying fake cover. The scam is the work of ‘ghost brokers’ – organised criminals who target drivers looking for a cheap insurance deal. The City of London police says they are tackling the problem head.

This relatively new phenomenon is where fraudsters target mainly young drivers and communities where English isn’t the first language with offers that are hard to resist. The gangs often issue fictitious policies or even engage with real insurers to provide cover at a low rate by submitting false personal details.

Jane Peters, head of Operations at AGS Risk Solutions says: “These fraudsters are targeting young drivers who are faced with high premiums and therefore an easy target. When it comes to motor insurance, the difference between being an 18-year old student living in Birmingham and a 55 year old driving instructor from Wales is significant. With a potential saving of thousands of pounds it isn’t hard to understand why so many fall for the scam.”

According to one of the country’s largest insurers, Axa, as many as 20,000 people could unknowingly driving around without cover. Steve Gaywood, head of counter-fraud at Axa, has acknowledged that motor insurance premiums are now at a level which is hard for some to afford. He said: “It seems that some unscrupulous individuals are using this as a hook to con people into buying insurance that isn't valid."

“The fact that the police is launching a new unit specifically to deal with insurance fraud is good news, and not a moment too soon,” said Jane. “The advice to consumers is to remember that, if something sounds too good to be true, it usually is.”