‘Be suspicious’: Drivers could lose £599 in car insurance scams – expert on warning signs
Morning Live: Expert shares tips on car insurance
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Experts have issued a warning as some companies are claiming a special discount or promotion can be applied when customers pay with a gift card or prepaid card. However, the experts warned paying for car insurance with a gift card is something drivers should never do.
They instead advise using a credit card, which provides more protection.
Reports from Action Fraud show that ‘ghost broking’ saw nearly a 10 percent increase on the previous year for the total number of reports for this type of fraud.
Of those reports, around a third came from victims aged between 17 and 29.
‘Ghost broking’ is a form of insurance scam where the scammer – or ‘ghost broker’ – sells someone a car insurance policy that either doesn’t exist or isn’t valid.
On average, victims lose an average of £599.
This comes along with the risk of driving with invalid insurance, which could lead to further consequences.
It’s against the law to drive a vehicle on a public road without at least the most basic level of car insurance, third party insurance.
According to the RAC, if a driver is caught driving a vehicle they are not insured to drive, the police will hand out a minimum of six penalty points and a fixed penalty fine of £300.
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The repercussions of using a ghost broker are not only financial.
If involved in an accident, drivers could face unpaid claims, fines and even convictions due to lack of legal insurance.
In extreme circumstances, the uninsured car could even be at risk of being crushed and the driver could risk losing their licence.
Longer-term impacts can include a higher car insurance premium in the future.
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