Driver trainers are being urged to warn pupils – especially young learners – about a sharp rise in fake car insurance scams promoted through social media.
Adding to the increasing list of online scams for drivers to be aware of, AXA UK and the Insurance Fraud Bureau have highlighted how so-called ‘ghost brokers’ are exploiting the high cost of motor insurance by offering deals that appear genuine but leave drivers completely uninsured. The scams are typically advertised on platforms such as Facebook, Instagram, SnapChat, and TikTok, and target young drivers desperate to save money.
Ghost brokers may provide:
- Fake insurance documents that appear legitimate but offer no cover.
- Real policies purchased with false information to reduce costs—rendering them void in the event of a claim.
- Genuine policies that are later cancelled by the scammer, who pockets the refund.
The National Crime Agency has even released mocked-up examples of scam adverts to help raise awareness, including offers claiming “100% legit insurance guaranteed to beat any price.”
The risks are severe. Driving without valid insurance can result in:
- A £300 fine and six penalty points.
- Vehicle seizure.
- A court summons that may lead to an unlimited fine and driving ban.
Karl Parr, Claims Technical Director at AXA UK, advised: “Ghost brokers typically offer premium prices far cheaper than customers can find elsewhere. Remember, if something sounds too good to be true, it almost certainly is.”
One young driver, Wayne Simpson, shared his experience after buying insurance via social media. “We called up Aviva and they told me there wasn’t a policy taken out in my name,” he told Sky News. His documents looked so real that even a police officer believed them at the scene of a crash—until checks revealed the policy didn’t exist.
Figures from Aviva show that around 30% of young drivers have unknowingly purchased car insurance from a ghost broker, and 89% of those who used social media to buy insurance faced serious consequences.
In a recent prosecution, 30-year-old Touqir Nasir of Luton was jailed after pleading guilty to multiple fraud charges for posing as an insurance broker via Instagram. He was sentenced to one year in prison and had £16,000 in cash confiscated.
The ABI reports the average car insurance premium for Q1 2025 was £589—down from last year but still 23% higher than two years ago—highlighting the financial pressure that scammers are exploiting.
To avoid falling victim, AXA UK recommends:
- Avoid buying insurance from social media or messaging apps.
- Only deal with brokers registered with the Financial Conduct Authority (FCA) or British Insurance Brokers’ Association (BIBA).
- Never pay in cash or via bank transfer.
- Contact the insurer directly if anything about the policy feels suspicious.
With fraud and cybercrime on the rise—including social media hacking and impersonation scams—ADIs can play a key role in protecting young drivers through proactive education and by signposting trusted sources.
For more guidance on identifying legitimate insurance providers, visit the FCA website or BIBA website.
This warning is based on a report from the Daily Mail published on 20 May 2025. You can read the original article here.
