by constructaquote - 7 September 2018
A report conducted by Smart Driver Club Insurance suggests that the number of vehicle insurance policies written in the UK by ‘ghost brokers’ has risen by 14% in the last 12 months.
A crackdown on easy credit and the restriction aimed at drivers meeting affordability checks by insurance companies and vehicle dealerships has meant that drivers are being pushed into the hands of ghost brokers.
Drivers are unwittingly turning to fraudulent insurance brokers due to a crackdown on credit agreements and the affordability checks made by banks and vehicle dealerships. So-called ghost brokers mainly target drivers by taking their money in return for providing fake insurance documents. Fraudsters are also scamming customers by buying genuine insurance cover then cancelling the policy and pocketing the money.
Penny Searles, chief executive of Smart driver club, said: “As premium levels have soared, ghost broking has become a real challenge and risk for unsuspecting motorists.”
Smart driver has estimated that for every 1,000 insurance policies issued, 30 are invalid. If the same logic was replicated across the country, which could see up to a million vehicles driven being driven without valid insurance cover whilst believing they are complying with the law.
Those involved only discover they have been driving without insurance when they have been involved in an accident and need to make a claim, or have been stopped by the police while driving.
Before taking out a new policy or placing business with a broker, make sure to:
Here at constructaquote.com, we offer a range of vehicle insurance policies. To find out about the policies we offer visit our insurance page, alternatively, you can also give us a call on 08081 68 68 68.
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