Black Friday Shoppers Warned To Look Out For Car Insurance Scams

By Author: Jack Pot
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Shoppers are being warned to be vigilant when it comes to purchasing car insurance during the next few days. It isn't only fake goods they should be watching out for. The Insurance Fraud Bureau (IFB) is urging shoppers to be wary about bogus car insurance offers.
The IFB works alongside the UK police in order to stamp out insurance fraud in the UK. They have said that a number of "ghost agencies" have popped up in recent weeks and have warned drivers to be aware of car insurance offers which sound too good to be true.
According to Detective Chief Inspector Andy Fyfe of the City of London, "Ghost brokers leave victims with a policy that isn't worth the paper it's written on and open to the sever consequences that comes with driving without valid insurance".
“It’s a legal obligation to have valid car insurance, and if you’re caught by police without it you could face the following; points on your driving licence, a fixed penalty notice, having your vehicle seized and possibly destroyed, and being liable ...
... for claims costs if involved in an accident.”
Bogus insurance costs the average victim nearly £800.00. The majority of the people affected are young drivers between the ages of 17 and 24 who view the adverts on social media such as Facebook and Instagram and are lured into buying the policies from the "ghost brokers" because of the cheap prices.
Car insurance fraud does not just take place in the UK. It occurs throughout the world and in many different ways from people of all ages. This 79 year old Dutch man from Altea in Spain tried to scam his Spanish car insurance company when he reported his vehicle stolen back in 2016. The car was later found parked up at Alicante Airport.
Action Fraud have advised car insurance shoppers to be wary of unsolicited calls from insurance brokers to sell them a policy. They have recommended that shoppers only buy car insurance from reputable brokers who have a proper office address and fixed landline. Shoppers have also been advised to check if the company is listed on the Financial Services Register and authorised by the Financial Conduct Authority or the British Broker's Association.