Car insurance warning: Drivers could lose £ 599 to scammers – experts show how to stay safe
Experts have issued a warning because some companies claim that a special discount or promotion can be applied when customers pay with a gift card or prepaid card. However, experts have warned that paying for auto insurance with a gift card is something drivers should never do.
The repercussions of using a shadow broker are not just financial.
If involved in an accident, drivers could face unpaid claims, fines and even convictions due to lack of legal insurance.
In extreme circumstances, the uninsured car may even be run over and the driver may lose their license.
Longer-term impacts may include a higher auto insurance premium in the future.
Ghost brokers often use mobile phone numbers and communicate through WhatsApp or Facebook Messenger.
Legitimate insurers are more likely to use a non-mobile phone number.
Alex Kindred, auto insurance expert at Confused.com, said: “Non-English newspapers also tend to advertise on student websites, social media platforms and money saving platforms.
“Always keep in mind that if one insurance quote is considerably cheaper than several others you have received, it could be offered by a fraudster.
“A legitimate insurance broker with proper authorization should be listed on the British Insurance Brokers’ Association website.
Therefore, if the ‘broker’ is not present, does not have their own website, or only discloses a cell phone number or email address as a contact, you should definitely be wary. “
Some ghost brokers also operate websites.
They can vary in quality, some look convincing and some less, but that doesn’t mean they’re legitimate.
According to the Motor Insurer’s Bureau, there are around one million uninsured drivers on UK roads.