As a result an animated video warning newly qualified and young drivers of fraudsters has been released as part of a national awareness campaign by the charity Crimestoppers alongside the police and members of the insurance industry.
Check out the video below for more information:
These fraudulent businesses - also known as "ghost brokers", tend to target young male drivers with fake car insurance policies. With over 27.6 million cars insured in the UK last year alone and with new young drivers paying higher premiums many of these ghost brokers are profiteering off their misfortune by offering cheap deals online, in person, restaurants, cafes and even university and college campuses.
The problem with the policies these fraudsters are offering is the fact that young motorists are being exposed to a whole host of problems, including:
- Driving without valid insurance - which means the young driver is not adequately covered.
- The car could be seized by the police if it's not covered by a real insurance policy.
- Young drivers could end up facing fines as well as risk incurring a criminal record.
- The cost of bills for any damages or injuries if they cause an accident.
Commenting on the problem the Deputy Head of IFED, DI Dominic Parkin stated:
“Ghost broking is a nationwide problem which is now being met by a national law enforcement response. But making arrests and securing convictions is one piece of the puzzle - raising public awareness to prevent the fraudsters from duping young drivers is equally as important."
Here at iKube we recommend that young drivers do their research before buying a policy from any broker - online or otherwise. We work with a panel of insurers including Markerstudy, Equity Redstar, Sabre and Avive to help tailor a car insurance policy for young and learner drivers.