Ghost brokers targeting young drivers via social media

Richard Aucock, Contributor
Fri, 22 Nov 2024

Nearly 1 in 3 young drivers have been caught out buying invalid or fake car insurance from someone operating illegally on social media platforms such as TikTok or Snapchat.

The practice, known as ‘ghost broking’, sees fraudsters pose as legitimate car insurance companies, preying on young drivers and others finding it difficult to buy or afford insurance.

The surprising findings are from an Aviva survey of 2000 drivers aged 17-25.

Worryingly, the insurer warns that those who bought car insurance via social media have almost certainly used a ghost broker – and their policy is likely to be worthless as a result.

What’s more, they could face having their car seized, an unlimited fine or even a driving ban.

"Young drivers aged 17-25 are the first generation to grow up with social media being an integral part of their daily lives," says Aviva policy application fraud lead Katriona Cunningham.

"It is understandable, then, when looking for car insurance, 30% of young drivers said they would turn to social media."

Aviva explains that ghost brokers are actively targeting young drivers on social media platforms, offering cheap but worthless car insurance that puts the young driver at risk of being uninsured.

It adds that if a deal seems too good to be true, it probably is. The advide is to avoid anyone offering access to cheap car insurance via social media as they are probably fraudsters.

The warning comes as over 3 in 4 young drivers say they’ve seen social media posts for cheap car insurance.

Alarmingly, nearly 9 in 10 who did buy car insurance on social media experienced serious consequences – with 1 in 6 stopped by the police for driving without insurance.

22% also made a claim that was rejected because they weren’t properly insured.

Aviva says that to check whether a policy is genuine, young drivers should:

• Verify the broker through BIBA and FCA registrations
• Check the insurer is in the Motor Insurers’ Bureau
• Avoid social media deals because legitimate brokers don’t operate solely on TikTok or Snapchat
• Contact insurers directly and check the Financial Service Register
• Report suspicious activity to the IFB’s Cheatline

Ask HJ

Is no claims bonus linked to a car or the driver?

I used to own two cars. On one, I never had any claims but I did on the other. I no longer have the car that had no claims made on its insurance. My car insurance is up for renewal and it shows the claims made. May I now legitimately use the No Claims Bonus I built up on the car I no longer have as both were under different policies?

Your No Claims Bonus (NCBs) are linked to your individual car insurance policy, not the driver, so they won’t automatically transfer. But it might be worth contacting your insurer to ask if they’ll acknowledge the 12 years NCB from your old car. To better your chances of having these transferred, make sure you have proof of your NCB in case they ask for it.

Answered by Rhydian Jones

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