Motorists that fall victim to fraudulent, callous, ghost brokers pay for non existent insurance and face penalties if stopped by police, the Steer Clear of Fraud Campaign revealed. The scam is straightforward. The broker promises to find you insurance at a competitive, too good to be true, price. The fraudster then either:
Produces fake documents not liked to a policy
Starts a policy, but provides false information to reduce the premium – which makes it invalid – then pockets the difference
Starts a policy, but cancels it and retains the refund
Penalties for not having motor insurance
The police make no allowance if you become the victim of such crime. Whatever your intention and belief, you have not got valid insurance and that is against the law. Potential sanctions include:
- Fine
- Penalty points
- Vehicle seized (or crushed)
- Costs to retrieve your impounded vehicle
- Liable for costs if involved in a collision
- Immediate requirement to purchase genuine insurance
- Recognise that ghost brokers tend to scout for business via social media, adverts in newspapers/magazines and cold calling
- Note that if a offer looks too good to be true, it probably is
- Beware brokers that can only be contacted via a mobile/e-mail
- The British Insurance Brokers’ Association website has a list of authorised brokers – so check your broker’s credentials
- The Motor Insurance Database confirms whether your vehicle is insured – so refer to its website
“The chance of getting caught without insurance is greater than ever. Furthermore, a criminal conviction for driving uninsured will make getting future insurance much more expensive. Stay legal on the road by shopping around in the competitive motor insurance market for the right insurance at the best price”, Allen concluded.
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