Millions of drivers born between 1999 and 2007 could be fined £1,000 after 'falling for it'

Millions of drivers born between 1999 and 2007 could be fined £1,000 after 'falling for it'

by · Birmingham Live

It has been warned millions of young and vulnerable drivers could be fined £1000 if they fall for a "ghost broker" scam. Young and vulnerable drivers could see their cars seized if they fall for a new scam, according to the UK's largest car insurer.

30 per cent of young drivers have purchased car insurance from someone operating illegally on social media platforms by selling invalid or fake car insurance, says Aviva. Aviva surveyed 2,000 drivers aged 17-25 - born between 1999 and 2007 in an effort to highlight the issue of ghost broking.

Katriona Cunningham, Policy Application Fraud Lead at Aviva, said: “Young drivers aged 17–25 are the first generation to grow up with social media being an integral part of their daily lives. It is understandable, then, that when looking for car insurance, 30% of young drivers said they turn to social media.

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"However, ghost brokers are actively targeting young drivers on social media platforms, offering cheap-but-worthless car insurance that puts the young driver at risk of being uninsured. I would say to all young drivers: if a deal looks too good to be true, it probably is. If you engage with someone offering cheap insurance on a social media site, they are probably fraudsters. Avoid anyone offering access to cheap car insurance via social media.

"If you suspect you’ve encountered a ghost broker, report it to the Insurance Fraud Bureau or Action Fraud so they can investigate and prevent others from being scammed." 49 per cent said their details (e.g. age, address) were misrepresented on the policy, meaning it was not valid.

22 per cent said they made a claim which was declined because they weren’t properly insured. 21 per cent said the seller didn't help them when they raised concerns. 17 per cent said the police stopped them and impounded their vehicle or issued a fine for driving without adequate insurance.

Drivers without valid insurance face £1,000 if caught.