Brits unaware of criminals selling fake insurance

Almost half of UK motorists claim they’d be unable to spot a fake insurance policy, according to new research.

The shocking statistic comes from a poll carried out by the motoring insurance experts at Quotezone.co.uk, revealing almost two thirds of those questioned (63%) had never heard of ghost brokers, the criminals selling fake or invalid insurance policies.

Ghost brokers tend to offer cheap insurance deals to entice customers into buying car insurance that doesn’t actually provide the cover they need, or any protection at all, which could result in heavy fines and a criminal prosecution for the unsuspecting motorists.

This surging form of fraud is on the up, with more than a 50% surge in ghost broking activity over the two years to 2025* – creating a real concern for Brits, with nearly half (47%) of those surveyed admitting it’s a worry.

Driving without valid insurance on public roads could result in a £300 fine and six penalty points. But if it goes to court, it can lead to an unlimited fine and a driving disqualification.**

There are a number of ways ghost brokers operate. They can create fake paperwork with the branding of real insurers or they can buy a real policy by falsifying age, address or driving history to lower the price.

Ghost brokers can also take out a legitimate policy and cancel soon after payment, leading motorists to believe they are still insured.*

Worryingly, 11% of those questioned admitted they had considered buying insurance through social media platforms, although this figure is much higher amongst younger age groups.

Research by the FCA (Financial Conduct Authority) revealed 49% of young drivers have purchased insurance through social media or messaging apps – popular platforms for this particular type of illegal activity.***

Out of those questioned, 89% believed high insurance costs make some drivers more vulnerable to these types of scams – with 96% saying more needs to be done to protect UK drivers.

Although car insurance costs have dropped after the surge in 2023, premiums are still stubbornly high due to increased repair and claims costs and are actually starting to increase as of Q2 2026.  

The experts are outlining the red flags to help drivers avoid falling victim to ghost brokers, including steering clear of deals on social media and being wary of low prices.

Greg Wilson, car insurance expert and CEO at Quotezone.co.uk said: “The number of people unaware of ghost brokers is a concern, especially since almost half of those questioned feel they’d be unable to spot a fake car insurance policy.

“Ghost brokers prey on drivers looking for a bargain, and with the cost of living still squeezing household budgets, it’s easy to see why a cut-price deal might seem tempting. But the consequences of buying invalid cover can be devastating. Driving without valid insurance not only leaves drivers unprotected should they have an incident on the road, it is a criminal offence which can result in hefty fines, penalty points and even prosecution. 

“It’s a topic that UK drivers are becoming increasingly concerned about. The recent Quotezone data shows 47% are worried about being duped by fake insurance – making it so important to know the red flags and how to double check it’s safe. 

“There are crucial checks drivers can do to help ensure their policies are legitimate. Searching for insurance through a trusted comparison site or insurance provider is key. Always sense check the price against multiple sources and look for a valid Financial Conduct Authority registration number.

“Taking a few extra minutes to verify a policy could save thousands of pounds and protect drivers from fines, penalty points and even a criminal record.”

Ghost broker red flags to look out for:

Deals on social media

Deals only available through Instagram, TikTok, WhatsApp and other social media platforms are not the place to purchase car insurance and will likely expose you to ghost brokers. Instead go directly to comparison sites or the insurer to discuss taking out a policy or a renewal.

Contact details

If there is a landline contact number, it’s sensible to call to check credibility and match it against a registered office address. Some providers are now fully online with no landline number to help verify the details, making it important to perform extra checks. Note contact details via mobile phones or webmail are big red flags.

Payment methods

Insurance is normally paid for in full annually via debit or credit card, or via monthly instalment with a direct debit. If your insurer asks for cash or a bank transfer, question its legitimacy.

Too low prices

If the price quoted is unbelievably low, you’re likely to be falling victim to a ghost broker. Check the price you’re quoted against others using a price comparison site.

Check the firm and your vehicle

If you’re still unsure, you can verify the firm via the Financial Conduct Authority Register or the British Insurance Brokers’ Association (BIBA) – checking they are actually a member and that the contact details match. If you think you may have fallen victim to a ghost broker, you can check the Motor Insurance Database to see if your car is actually covered for insurance.

Quotezone’s panel of insurance providers are all FCA regulated and are carefully assessed, with ongoing checks to maintain high standards of governance – ensuring customers are protected by trusted, regulated firms. 

As one of the largest price comparison sites in the UK, Quotezone has been helping drivers for over 20 years, finding them quality motoring products like car insurance and breakdown cover, from trusted insurance providers. 

References:

*https://www.insurancefraudbureau.org/media-centre/ifb-news/2025/don-t-get-it-ghosted-new-drivers-warned-of-rise-in-fake-car-insurance-deals-on-social-media

**https://www.cityoflondon.police.uk/police-forces/city-of-london-police/areas/city-of-london/about-us/about-us/ifed/ghost-broking/

***https://www.gov.uk/vehicle-insurance/driving-without-insurance

****https://www.fca.org.uk/news/press-releases/young-drivers-warned-about-fake-insurance-sold-social-media

Photo credit – iStock.com Yuliya Taba

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.