Insurers warn of ‘ghost brokers’
- Posted by: Simon Wait
- Category: News
Motorists should steer clear of cheap insurance deals sold in pubs, clubs, campuses and on dubious websites, according to the ABI.
So-called ‘ghost brokers’ sell cheap, but counterfeit, motor insurance policies, leaving drivers at risk of having to pay out for themselves following accidents.
The Association of British Insurers (ABI) said that unauthorised insurance advisers were even pushing for business in pubs and clubs. Some 26 cases are currently being investigated by the industry’s team studying large-scale operations.
Fraudulent brokers are advertising in some newsagents, via social media, and have even set up ‘professional-looking’ websites in order to dupe unsuspecting victims.
Drivers may be tempted by the cheap prices being offered, but these types of policies are often invalid, and could result in vehicles being seized or even facing prosecution, especially following an accident.
The ABI suggests that drivers should shop around for a good deal, but always check the authorisation and reputation of the provider.
Websites such as the Motor Insurers’ Bureau’s Motor Insurance Database and the Financial Services Register can be used to check whether or not a broker is authorised to sell insurance.