'Be Suspicious': Motorists May Lose £ 599 to Automotive Insurance Fraud – Warning Indicators Professional – Each day Specific
Experts have issued a warning that some companies claim special discounts or promotions when customers pay with a gift card or prepaid card. However, the experts warned against paying for car insurance with a gift card, which motorists should never do.
The consequences of using a ghost broker are not just financial.
In the event of an accident, drivers face unpaid claims, fines and even convictions for lack of legal protection insurance.
In extreme circumstances, the uninsured car could even be crushed and the driver could lose his driver's license.
Longer-term effects can be a higher car insurance premium in the future.
Ghost brokers often use cell phone numbers as well as communication via WhatsApp or Facebook Messenger.
Legitimate insurers are more likely to use a non-cell phone number.
Alex Kindred, car insurance expert at Confused.com, said, “Non-English language newspapers also tend to advertise on student websites, social media platforms and money-saving platforms.
“Always remember that an insurance quote that is significantly cheaper than several others you received could be offered by a scammer.
"A legitimate and licensed insurance broker should be listed on the British Insurance Brokers' Association website.
"So if the 'broker' is not there, doesn't have a website or just reveals a mobile phone number or an e-mail address as a contact, you should definitely be suspicious."
Some ghost brokers also operate websites.
They can vary in quality, with some looking convincing and some less so, but that doesn't mean they're legitimate.
According to the Motor Insurer’s Bureau, there are around one million uninsured drivers on British roads.