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Warning Against Fake Car Insurance

Warning Against Fake Car Insurance Image

Motorists are being warned to watch out for "ghost" brokers as the number of drivers who are being sold worthless car insurance continues to rise.  Drivers who are already forking out high petrol costs, as well as those who have taken out extended auto warranties, are being tempted by unscrupulous advertisements that offer car insurance coverage at low prices, according to new research.

Fake brokers are popping up all over the place, advertising their worthless policies in everywhere from local newspapers, shops and on the internet, including sites such as Gumtree, conning drivers - particularly younger motorists - with insurance deals that seem to be able to undercut most car insurance companies and save drivers money. 

The national fraud reporting centre of the United Kingdom, Action Fraud, says that as many as 20,000 motorists could be driving around without real insurance after responding to the fake adverts.  "Ghost brokers" are being regarded as an increasing threat to the insurance industry, particularly when other scams such as fake whiplash claims and "crash for cash" are already helping to push up the price of premiums. 

"We all know car insurance premiums have risen in the last couple of years, and for some motorists it is difficult to afford or find" says AXA's Head of Counter-fraud, Steve Gaywood.  "It seems that some unscrupulous individuals are using this as a hook to con people into buying insurance that isn't valid."  Insurance fraud is believed to cost the United Kingdom £3 billion per annum.


published: 15/12/2011 14:00:00

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