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Beware the cheap car insurance that's too good to be true

In our latest investigation we found social media sites rife with ads for fake insurance. 

They seem professional, with reams of feedback from happy customers, so – as anyone would when getting any car insurance quote – you enter your details. 

Moments later you’re offered a price that undercuts everything else by hundreds of pounds.

Unfortunately, in this case, you might not be dealing with a real broker. 

The scam is known as 'ghost broking' – and it's estimated to have put tens of thousands of motorists unwittingly onto the roads with fraudulent cover.


What is ghost broking? 

Ghost brokers are unlicensed intermediaries that claim to be able to find unbeatable car insurance prices for drivers struggling to get affordable cover. 

They have various ways of operating - including selling forged paperwork to their victims. Most commonly though, they'll sell a 'real' policy that will appear against the vehicle on the Motor Insurance Database.  

However, while the cover theoretically exists, the ghost broker will have reduced its price by changing some of the policyholder's details in the application - such as the driver's address or claims record. 

Any serious scrutiny of the policy - which is almost certain if you try to make a car insurance claim - will reveal it was bought under false pretences.  

This will void the cover, leaving you potentially liable for fraud and at risk of penalties for driving uninsured. In 2021, ghost broking victims who contacted Action Fraud reported losses of £1,950 on average


Read more about our latest research and how to spot ghost brokers on social media.



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Message Sent By
Margaret Sumner
(Cheshire Police, PCSO, Widnes LPU - Broadheath)

Neighbourhood Alert Cyber Essentials