Spooky truths have been revealed following ITV’s recent programme ‘Car Insurance: Cost and Cons?’ about the rise in Ghost Broking, tricking young drivers in to cut price insurance costs.
The Ghost Brokers target young drivers aged 18-24 by offering prices which save cash-strapped youngsters hundreds of pounds. According to the programme, one of the anonymous fraudsters target young drivers as they are ‘naive’ and will ‘only be thinking about the money’.
So what is an example of ghost broking?
- Just like a legitimate broker, ghost brokers buy car insurance policies on behalf of others. When doing so they may give the insurer false details that cut the cost of premiums – such as claiming the car is kept in a garage overnight or changing the driver’s age and occupation. These may result in a cheaper premium, but they will produce an invalid certificate – something which many drivers won’t check.
- The ghost broker may alter the insurance documents they receive and passes them to their clients in exchange for a large fee. Some ghost brokers may go as far as cancelling the policy and pocketing the refund for themselves
- As a ghost broker buys a real insurance policy, the driver and their car are entered into the motor insurance database, so the policy seems real when the driver checks it out.
Although ghost brokers charge hundreds of pounds for their services, young drivers are happy to pay up, as some believe they can save thousands on their car insurance premiums quoted by others.
According to the programme, the one Ghost Broker they interviewed claimed he made up to a staggering £60,000 in a month and then invests it into Bitcoin, off-shore bank accounts and bought overseas land.
They do this to keep everything out of the country so if they do get caught there’s no traces left in the UK.
We understand how important price is to people, especially youngsters. However, we hope by highlighting alarming cons like this one, people will understand and become more aware that they should check all insurance documentation as they may not be covered if it is wrong, and as a result could face some serious consequences when there’s a claim.
To speak to a real person and not be spooked or tricked this Halloween, speak to one of our experts today on 01444 810 088.