Tag: insurance

New drivers urged to avoid car insurance scams on social media

  • The IFB is warning new drivers to watch out for a rising scam known as ‘Ghost Broking’ which involves bogus car insurance deals being sold on social media, as it could cost them their first car. 
  • The warning comes as hundreds of thousands of learners get set to pass their driving tests as they catch up from the disruption caused by Covid-19.
  • The Driver & Vehicle Standards Agency (DVSA) also provides comment.
  • Statistics and campaign content can be found in the notes to newsroom. 

The Insurance Fraud Bureau (IFB) is urging new drivers to watch out for bogus car insurance deals being promoted on social media, as hundreds of thousands of learners* get set to pass their tests following a year of disruption caused by Covid-19.

Fake car insurance sales known as ‘Ghost Broking’ is a growing scam which involves fraudsters pretending to be Insurance Brokers in order to sell unrealistically cheap and completely fake policies, often to younger drivers via Facebook and Instagram.

With a large influx of new drivers on the horizon following confirmation from the Driver & Vehicle Standards Agency (DVSA) that driving test centres face an unprecedented challenge to reduce waiting times left by the pandemic, the IFB is warning new motorists to be vigilant to bogus car insurance deals on social media as it could cost them their first car.

Stephen Dalton, Head of Intelligence and Investigations at the IFB, said: “The last thing new drivers need right now is to risk losing their car for no insurance because they’ve been duped by a scammer on social media.

“Drivers must carry out basic checks to make sure they’re buying car insurance through a trusted provider, or they’ll be making a very expensive mistake.

“I encourage anyone who’s seen evidence of an insurance scam to report it to the IFB’s confidential Cheatline online or on 0800 422 0421.” 

Mark Magee, Head of Driver Policy at the DVSA, said: “DVSA’s priority is to help everyone through a lifetime of safe driving.

“As well as ensuring you have the skills, knowledge and understanding attitude to drive safely, having valid insurance is of the utmost importance when you drive on your own.

“Check to make sure insurance brokers are genuine before parting with your money.”

Learner drivers in a driving school are typically covered by their instructor’s insurance policy, until they pass their test and need to take out motor insurance for their first car. With a rush of new drivers approaching and with so many people facing financial hardship, the IFB is concerned it will provide fertile ground for ‘Ghost Broker’ scammers.

Fraudsters often tempt younger people with their bogus car insurance deals by promoting unrealistically cheap prices up front, despite the fact insurance is meant to be priced based on the risk of the individual. They often then encourage contact with them through popular end-to-end encrypted messaging software such as WhatsApp.

The IFB which is a not-for-profit organisation that works with the police to crackdown on organised insurance scams has seen its investigations into ‘Ghost Broking’ double since 2016, and the scam has remained prevalent throughout the pandemic.

IFB investigations have found cash-strapped young drivers forking out hundreds of pounds for car insurance that in reality is worth no more than a photoshopped piece of paper. In some cases scammers also use stolen personal information to take out policies which are then doctored before being sold on to customers.   

Driving without valid insurance is easily detected by police. Uninsured drivers can have their vehicle instantly seized and are likely to receive six licence points. They can also face court where they might receive an unlimited fine and a driving ban. Furthermore, an uninsured driving conviction will show on records and can affect job prospects.

If a collision is caused by the uninsured driver they may also be liable for covering the costs which can run into the thousands.   

Avoiding fake car insurance deals

New drivers are urged to avoid deals on social media or messaging apps and to only purchase car insurance through reputable sellers.

Anyone with evidence of an insurance scam can contact the IFB’s Cheatline which is quick, easy and confidential to use.

The Cheatline can be contacted online or via phoneline (powered by Crimestoppers) on 0800 422 0421.

Three-in-10 drivers so worried about narrow country lanes they deliberately avoid them

  • Drivers willing to add more than a half marathon distance to their journey to avoid narrow roads
  • 1 in 10 drivers has had an argument over who should reverse back to a passing place on a narrow country road

Three-in-10 motorists admit to deliberately steering clear of narrow country lanes and are prepared to take a detour of 16 miles or 25 minutes to avoid them, according to new research from one of the UK’s biggest car insurers, Ageas, and the RAC.

As millions of Brits jump into their cars and head off on staycations in the countryside this summer, the figures highlight just how unnerved many drivers – especially those who live in towns and cities – are by Britain’s rural roads, which account for more than half of all those in the country.

More than half of drivers (58%) say they find using narrow country roads stressful, a figure that rises to 76% for drivers who live in urban areas. The two biggest causes of stress, according to the research, are the difficulty of squeezing past other vehicles in tight spaces (62%) and the fear of colliding with another vehicle head on (61%).

But the etiquette of who moves out of the way is also high on drivers’ list of concerns about these types of roads. Having to try to reverse back to find a passing place (45%), the fear of meeting a tractor and not being able to pass (44%) and deciding who succumbs to back up to a passing place (37%) make up drivers’ top five stress factors.

More than a third (36%) meanwhile say they think the default 60mph limit on country roads is just too fast to begin with, while 35% say they fear damaging their car.

The research suggests that some motorists are more vocal than others when it comes to deciding who has to reverse, with one-in-10 drivers admitting they’ve had an argument with another driver over who should go back when driving on a narrow country road.

But it is the detours that drivers are prepared to go to avoid the stress of rural lanes which is perhaps most surprising. On average, people are prepared to add 16 miles – more than a half marathon – to their journey if it means they can avoid driving down this type of road. They’d also be willing to add another 25 minutes to their drive – enough time to watch a whole episode of Eastenders.

City-dwellers are also much more concerned about narrow country lanes and go to longer distances to escape them. Three-quarters (76%) of these drivers say they find them stressful, of which 27% say they will always stick to wider main roads instead. What’s more, these drivers say they’d be willing to add 23 miles or 30 minutes to their journey to avoid them, 14 miles and 10 minutes more than their rural counterparts.

Robin Challand, claims director at Ageas Insurance, said: “We understand that getting to your holiday destination can be stressful at the best of times. Between packing, long car journeys and hot weather, there’s a lot to get flustered about.

“Our research shows the type of roads we drive on can also be a cause of stress, with crashes and scrapes high on the list of people’s concerns, so we’re urging people to stay calm and – most importantly – stay safe this summer.

“Negotiating narrow rural lanes can be tricky, even for the most seasoned of drivers, but by following some simple tips and staying calm, you can avoid adding a damaged car to your list of things to get stressed about this summer.”

RAC Breakdown spokesman Simon Williams said: “With unprecedented numbers of drivers on the UK’s roads this summer, more and more people will find themselves squeezing down narrow country lanes to reach beaches and popular countryside spots – and these figures show just how uncomfortable many drivers are using doing this, especially those who are used to wider city roads with much better visibility.

“For any driver less confident with tackling rural lanes the message has to be to plan a journey properly before setting out, and drive at the right speed according to the nature of the road, even if the official limit is 60mph. We’d also advise not becoming too reliant on a car’s sat-nav – while ducking off a main road to shave off a few minutes might seem like a good idea, if you’re then faced with having to carefully negotiate a tractor and queue of vehicles coming the other way, any advantage is soon lost.”

The RAC offers three simple tips to help drivers negotiate rural roads safely and more stress-free this summer:

  1. Check your route carefully – if using a sat-nav, scrutinise the suggested route before setting out and see whether it’s actually easier and more comfortable to stick to main roads as far as possible instead. And be aware of sat-navs recommending diversions down narrow lanes for the sake of making up just a few minutes – it’s time that’s easily lost if you meet oncoming traffic. Don’t be afraid to take the long way round – perhaps an extra 16 miles or 25 minutes is well worth it
  2. Get in some practice – if you’re not used to negotiating narrow roads, then have some practice driving on some close to home before the pressure of a family holiday
  3. Take your time – while many country roads might have speed limits of 60mph, that doesn’t mean it’s the right speed to drive at – in fact, in many cases it’s incredibly unsafe to do so. Read the road carefully and consider what forward visibility you have. If it’s narrow and winding, reduce your speed accordingly

Separate RAC research suggests this summer will see very high levels of traffic on UK roads, with drivers planning in excess of 29m staycations – 16m of these in the school holidays alone.

Post-lockdown Scotland will need to lock-up or lose out

Over 4/5 of Scotland at risk of burglary this summer

As the UK flocks to full capacity pubs and newly opened clubs, home security must rise to the top of homeowners agendas.

New data from Quotezone.co.uk, insurance comparison website, shows that over 80% of people in Scotland do not have a burglar alarm system in their homes.

More worrying still is that the findings, which are based on a sample size of more than 350,000 home insurance policies collated over three years, shows that 79% of neighbourhoods in Scotland do not currently have a neighbourhood watch in operation.

It’s clear that home security has fallen down the priority list for many and now couldn’t be a better time to rectify this. Burglaries reduced by 28% as a result of lockdown as more people stayed at home, suggesting that without the right measures in place a rebound post-lockdown is very likely.

What’s more, this coincides with studies which show that during the months of June-August home burglaries are the highest with a spike of 10% compared with the rest of the year.

Therefore, a surge of people spending more time outside of their homes as well as abroad on holiday, alongside a seasonal spike in crime means that now is most definitely the time to be thinking about simple steps to keep you home protected this Summer.

Some top tips from Quotezone.co.uk below:

  • Do invest in light timers to switch on your lights as it approaches dusk for an hour or two to give the appearance that someone is home. The light sensors that switch on when someone approaches the property illuminates intruders and act as a deterrent.
  • Do not broadcast your plans on social media and if you do want to post holiday snaps, make sure your settings are set to private to avoid alerting strangers to your location.
  • Do make any security or alarm systems you do have noticeable to potential burglars with key positioning at the front or back of the house. If you do not have a system then you can pick up CCTV signs from your local police station.
  • Do check your insurance policy before you travel, look out for limits on leaving your property unoccupied and how long you can be away and still make a claim.

Greg Wilson, Founder of Quotezone.co.uk comments: “It does seem as if we could be heading towards a perfect storm in which more people spend time outside for the first time in 18 months, alongside a seasonal spike in crime, leading to a wave of burglaries throughout July and August.

“It is surprising that so few people across the UK have alarm systems or are involved in neighbourhood watch groups. Now is a good time to rethink the way they households are protecting their homes.

“Even if an alarm system is not something people can invest in right now, there are many other tips and tricks to secure your home and leave you feeling safer this Summer.”

92,000 UK motorists at imminent risk of losing their licence

92,000 motorists are at risk of losing their driving licence with just one more motoring offence resulting in a ban, a Freedom of Information request to DVLA by IAM RoadSmart has revealed.

There are some 92,000 drivers currently with 9, 10 or 11 points on their licence who face the real risk of losing their licence with another 3 points pushing them on or over the 12-point ban threshold.

This could be through everyday driving habits, ignorance or judgement errors – such as speeding, overtaking on a double white line, parking in a dangerous place, not stopping at a school crossing, carrying too many passengers or overloading the vehicle.

Many drivers may also be unaware that a lack of basic vehicle maintenance could also land you with points – such as defective tyres, blown headlight or brake light bulbs, cracked light covers, smeary windscreen wipers or worn suspension components.  

Specifically, at present there are 80,484 motorists in the UK with 9 points on their licence, 7,804 with 10 points and 4,313 with 11 points.

Meanwhile, there are nearly 8,800 motorists still driving with 12 points or more on their driving licence, with IAM RoadSmart once again renewing its call for a full review to ensure that drivers with multiple points are always treated in the same way. Until these anomalies are removed confidence in the simple “12 points and you are out” system will continue to be undermined.

Reasons that these drivers can keep their licence include exceptional hardship, such as loss of employment.

Neil Greig, IAM RoadSmart Director of Policy & Research, said: “The number of motorists still driving on UK roads with more than 12 points, or just under the driving ban threshold, is alarming.

“It is also an opportune occasion to educate motorists on some motoring laws that they might be unaware can result in licence points, so that motorists can change their driving habits and carry out regular basic checks of their vehicle to help make the roads safer for all users.”

Further data revealed by IAM RoadSmart’s Freedom of Information request also highlighted the postcode areas with the highest number of drivers with penalty points. These include Birmingham with 74,397, Sheffield with 56,876 and Nottingham with 56,245.

Top 10 most common driving offences which result in points:


Speed limits

  1. SP30 – Exceeding statutory speed limit on a public road – 3 to 6 points
  2. SP50 – Exceeding speed limit on a motorway – 3 to 6 points

Insurance offences

  1. IN10 – Using a vehicle uninsured against third party risks – 6 to 8 points

Construction and use offences

  1. CU80 – Breach of requirements as to control of the vehicle, such as using a mobile phone – 3 to 6 points

Traffic direction and signs

  1. TS10 – Failing to comply with traffic light signals – 3 points

Miscellaneous offences

  1. MS90 – Failure to give information as to identity of driver – 6 points

Licence offences

  1. LC20 – Driving otherwise than in accordance with a licence – 3 to 6 points

Construction and use offences

  1. CU30 – Using a vehicle with defective tyre(s) – 3 points

Careless driving

  1. CD30 – Driving without due care and attention or without reasonable consideration for other road users     – 3 to 9 points
  1.  CU50 Causing or likely to cause danger by reason of load or passengers – 3

New drivers should take extra care as they can amass points very quickly in their first two years of driving. This rule came into force on 1st June 1997.  Anyone of any age passing their first driving test is ‘on probation’ for two years.

A total of six or more penalty points during that time will mean they have to go back to learner status, apply for a new provisional licence and take the test again.

For advice on driving and motorcycle riding best practice, including details of IAM RoadSmart’s training courses on effective speed management and practical tips on vehicle checks, visit www.iamroadsmart.com.

How to manage your business insurance while working remotely

 With the country now in its third and hopefully final lockdown there are many businesses unable to operate from their usual premises under current government guidelines, many employees have reverted to working remotely from their homes.

While focus has been on transitioning equipment and employees, many business leaders may not have yet had time to consider their insurance policies and the potential impact of remote working over the longer term. 

To support businesses, leading insurance provider,Insurance2go, has shared advice on business insurance cover for those with employees who continue to work remotely. 

Check your policy 

This may seem like an obvious first step, but it is important to check that you are still covered by your insurance while employees work from home. 

The good news is that, generally, your insurance will cover your business when it’s not in its regular location. Where you operate from doesn’t really matter, as long as you’re still in the UK. However, you may need to check your contents insurance and whether it covers use of items such as laptops, for example, beyond your normal premises. If it doesn’t, you may need to extend your cover as you cannot rely on your employee’s home insurance to include business use. 

Health and safety checks 

Interestingly, The Health and Safety at Work Act 1974 makes no distinction between home and in-office workers. The regulations require employers to carry out a risk assessment of their employees’ workplace, to identify any potential risks so the employer can then seek to remove or mitigate the risk. 

It is not necessary to visit the employee’s home to carry out a risk assessment, particularly during the ongoing pandemic. However, HR managers can provide the employee with a detailed self-assessment questionnaire as part of a firm’s legal responsibilities for homeworkers. 

If your company does not have one already, there are many free templates available online. 

Heath & Safety Executive: Free Display Screen Equipment Checklist 

https://www.hse.gov.uk/pubns/ck1.htm

Keep records 

Your business needs to be able to show that is has done everything by the book, just in case a circumstance arises where an employee says you didn’t set them up to work from home properly and suffered as a result of it, or there is a data breach. Keep a record of everything you have done, including reasons and the dates they happened. 

It is important to have a home working policy that staff can access and read to ensure it is clear what is expected from both parties. 

Home working policies should cover key areas including: 

  • when employees will be available to work 
  • how and how regularly they’ll keep in touch 
  • how their performance will be managed 
  • health and safety expectations 
  • rules around confidentiality, IT security, storing information and data protection 
  • who employees should contact if they’re experiencing any problems. 

Get cyber insurance 

During 2020, the NCSA (National Cyber Security Centre) reported an increase in cyber-security threats, most likely as a result of employees working from home with serious breach affecting a business’s reputation1. 

Firstly, make sure IT teams have undertaken checks on all laptops, desktops, and tablets to make sure they are as protected as possible. Also ensure secure connections are set up from the worker’s home station to the company network. 

As cybercrimes become more sophisticated it is important not to rely on checks alone, having cyber insurance in place will help to mitigate further risks. 

Keep your insurer informed 

Most likely your business has changed due to the pandemic if you’ve seen a period of rapid expansion and growth. Whatever your circumstances then get in touch with your insurer. If you’re unsure, err on the side of caution and provide the updates, rather than running the risk of invalidating your policy. 

On the other hand, if your business is now having to operate remotely, you should check with your individual insurance providers as to whether they require you to check and maintain security systems while the premises are vacant. 

Richard Gray, Head of Marketing and Digital, at Insurance2go says:“It has been an unforeseen time for businesses and employees alike, and for many business leaders it can be hard to predict what the future looks like for their employees in terms of working remotely. 

“It’s more important than ever that businesses protect themselves from any unplanned expenses and we hope this advice helps people understand what is required from an insurance point of view, to continue to operate effectively and safely while working from home.” 

For more information on business insurance, please visit:

https://www.insurance2go.co.uk/about/news-blog/news/insurance2go-business-launches-new-specialist-multi-item-insurance 

Double disaster: flooding can invalidate both car and home insurance

With The Met Office forecasting this week’s weather will be a mix of floods, snow and gale-force winds, motorists and home owners are warned to take extra care by preparing where possible and being aware of what their insurance policies do and don’t cover when protecting their home and car.

While motorists with fully-comprehensive car insurance should be covered for any damage caused by debris during high winds and storms, they may not be covered for water damage caused by driving through flooded roads.

One of the UK’s largest car and home insurance comparison sites, Quotezone.co.uk, warns that some car insurance policies include clauses advising policyholders not to drive through flooded roads, and may specifically exclude from coverage any water damage to the car if the motorist goes against this advice.

Flood damage can also affect your home and if you haven’t declared your location accurately your policy could be invalid.  If your house is located within 400 metres of a river, stream or coastline you will need to have informed your insurance provider.  Even if you’ve never experienced flooding yourself, your house could be classed as a ‘flood-risk property’.

Online flood maps – such as this one from the UK government – allow homeowners to check their property’s level of flood risk before taking out buildings insurance or building and contents insurance.

Many insurance providers do take anti-flood doors and other permanent flood defence features into account when calculating insurance premiums – provided they meet the appropriate industry standards and have been installed by an industry professional.

With the worst of the winter weather ahead it is important for policy holders to be aware of the legalities, keep their insurer up to date and protect their policies both home and car.

Insurance comparison expert and Founder of Quotezone.co.uk, Greg Wilson, advised: “Some car insurance providers stipulate that motorists must not drive the vehicle through flooded roads, and this clause is often present in fully-comp policies as well as less comprehensive levels of cover – rendering the policy invalid should this advice be ignored.

“With the added possibility of snow and ice, it’s also sensible to make sure your car is roadworthy by checking tyres, oil, water and petrol before you set off.  Investing in a winter emergency survival kit for your boot is also advisable; thermal blanket, torch, phone charger, emergency food/water rations, first aid kit – some of our insurance providers offer these as standard.

“With home insurance it’s always best to be honest with your provider, use the online flood map tool if you’re unsure of the exact distance to nearby rivers and double check your home for any potential issues especially in relation to the colder weather, such as added insulation for pipes.” 

Quotezone.co.uk compare prices from over 110 UK car insurance providers and over 50 home insurance proivers – helping over 3 million users find a more competitive deal on their insurance. 

Advice on both home and car insurance products and suggestions for surviving the winter weather can be found on the guides section – quotezone.co.uk/guides.

Meerkat misery: big fine for ComparetheMarket

The CMA has fined ComparetheMarket £17.9 million after it found that clauses used in the company’s contracts with home insurers breached competition law.

An investigation by the Competition and Markets Authority (CMA) has concluded that, between December 2015 and December 2017, the price comparison website ComparetheMarket breached competition law by imposing wide ‘most favoured nation’ clauses on providers of home insurance selling through its platform.

These clauses prohibited the home insurers from offering lower prices on other comparison websites and protected ComparetheMarket from being undercut elsewhere. They also made it harder for ComparetheMarket’s rivals to expand and challenge the company’s already strong market position as other price comparison websites were restricted from beating it on price.

As a result, competition between price comparison websites, and between home insurers selling through these platforms, was restricted. The CMA found that this is likely to have resulted in higher insurance premiums.

ComparetheMarket’s clauses meant:

  • The insurers bound by the contracts were prohibited from offering cheaper deals on other price comparison websites. In turn, this limited competitive pressures on all home insurers competing on price comparison websites.
  • Rival comparison sites were restricted in gaining a price advantage over ComparetheMarket, for example, by lowering their commission fees to encourage those insurers to quote lower prices on their platforms.
  • The competitive pressures ComparetheMarket itself was subject to were weakened. Without the clauses, it would have had to compete harder to get lower prices from the home insurers, for example by reducing the commission fees it charged.

Michael Grenfell, the CMA’s Executive Director for Enforcement, said: “Price comparison websites are excellent for consumers. They promote competition between providers, offer choice for customers, and make it easier for consumers to find the best bargains.

“It is therefore unacceptable that ComparetheMarket, which has been the largest price comparison site for home insurance for several years, used clauses in its contracts that restricted home insurers from offering bigger discounts on competing websites – so limiting the bargains potentially available to consumers.

“Digital markets can yield great benefits for competition, and therefore for consumers. We are determined to secure those benefits, and to ensure that competition is not illegitimately restricted. Today’s action should come as a warning – when we find evidence that the law has been broken, we will not hesitate to step in and protect consumers.”

Further information on this investigation can be found on the case page.

Rocio Concha, Director of Policy and Advocacy at Which?, said: “The actions of ComparetheMarket have fallen well below the standard you’d expect from a company who claims to be working in the best interest of consumers, so it is positive to see the CMA intervening to protect consumers and issuing this large fine.  

“Customers should be able to trust that they can find the best deals when using price comparison sites, and any business found to be flouting the rules should be held to account.”

Make room! Drivers need to give cyclists space during lockdown

As bicycle use spikes during local lockdowns, drivers need to be aware of the 1.5 metre rule which encourages motorists to make room and protect cyclists.

During the first 30 days of lockdown in March, the Department for Transport (DfT) found that cycling fatalities were more than double the number compared to the same periods from 2015-18 – even though the level of vehicle traffic had dropped to 36% of its pre-lockdown level.

Of the 15 cyclists in the UK that lost their lives from 23 March – 22 April all but two incidents did not involve a motor vehicle. 

Various road safety initiatives have launched to raise awareness of the Highway Code’s Rule 163 that there should ‘plenty of room’ when overtaking – often recommend as 1.5 metre distance or roughly the width of a car.  It also states that drivers should overtake only when it is safe and legal to do so.

Motorists who flout the rule face a careless driving charge from the police, which can result in three penalty points on their licence and a £100 fine, or  in some cases, a more serious criminal conviction.  Undercover policemen on bicycles have used helmet-mounted cameras to help apprehend offenders

Research commissioned by Cycling Scotland found that 34 per cent of the population don’t always leave a 1.5 metre gap from cyclists, while almost 64 per cent were unaware of the three-point penalty on their licence if they are caught driving too close

Motorists should also bear in mind that insurance premiums generally increase by around 5% for the first three points on a licence, shooting up to as much as 25% for six points – premium loading can continue to apply until the points come off the licence after five years

The latest figures from DfT show cycling use jumped 10% during the week beginning 12th October compared to a week earlier.

Greg Wilson, founder of Quotezone.co.uk – which launched one of the UK’s first price comparison services for bicycle insurance – says: “We’ve seen an increase in traffic to our bicycle insurance comparison website since lockdown began – with people keen for socially distanced transport and exercise. 

“I would also expect an upcoming spike in December anuary with many putting bikes at the top of their Christmas list this year.

“This increase signals potential dangers – while there may be fewer cars on the road, the reduced congestion levels could encourage some motorists to increase their speed.   With so many people taking up cycling during lockdown a greater number of cyclists on the road may be relatively inexperienced, so making sure drivers make room with the 1.5 metre rule has never been so important

“We work hard to get drivers the best policy at the best price, and even when a driver has received penalty points we still have panel members that can offer them competitive quotes. However, the best plan is to ensure you don’t get those endorsements in the first place, which is why we recommend that drivers take their time, keep their distance and use the 1.5 metre rule when it comes to cyclists – that way we can ensure we all stay safe on the road.”

Quotezone.co.uk is one of the UK’s largest insurance comparison websites – comparing a wide range of competitive quotes across both car and bicycle insurance – helping over three million users.

Give us a No-Clowns Bonus

DISILLUSIONED people in Scotland would love to be able to take out insurance against incompetent politicians and a rubbish love life, according to a new study. 

They make the top ten list of things we wish we could take out a policy on, which includes noisy neighbours, being cheated on by a partner and being a victim of online bank fraud. 

Other weird things people would like to insure include a wig, a pert bum, buying fashionable shoes that hurt when you wear them, and even happiness, according to research by comparison site Money Expert. 

When it comes to more serious cover, it’s no surprise that one in ten people questioned in a poll of 160 adults in Scotland would like to have insurance related to Covid-19, especially against financial loss and disrupted travel plans. 

Despite almost all of us having some form of policy, many of us don’t think insurance is worth it and one in ten have no idea what common terms like “excess” and “premium” actually mean. Shockingly, almost nobody bothers to read the small print all the way through. 

Money Expert boss Jason Smith (www.moneyexpert.com) said: “There are some things in life you just can’t insure against unfortunately. But the more conventional policies are key to peace of mind, protecting us if we fall ill and covering some of the more expensive items in our lives. 

“It’s also vital that people research the types of policy available and then take time to read the fine print so there are no nasty surprises if they have to make a claim.” 

TOP 10 THINGS WE’D LIKE TO INSURE AGAINST  

Online banking fraud……46% 

Incompetent Politicians…18% 

Noisy Neighbours…………14% 

Bad romance……………….12% 

Career Insurance………….12% 

Lack of Common Sense…11% 

Misuse of Social Media…..11% 

Foreign Affairs…………..……9% 

Bad Weather…………………..8% 

Public Transport Exposure..8% 

Beware Covid insurance scams

Public urged to watch out for insurance claims scams exploiting financial losses caused by Covid-19 disruption

  • The Insurance Fraud Bureau (IFB), the City of London Police’s Insurance Fraud Enforcement Department (IFED) and the Association of British Insurers (ABI) are urging the public to be alert to Covid-19 insurance claims scams.
  • Experts are concerned there may be a rise in insurance claims scams that aim to exploit the financial losses individuals have suffered during the pandemic.
  • Nuisance scammers claiming “you may be entitled to compensation because of      covid-19 financial losses” could become the ‘new PPI’.

The Insurance Fraud Bureau (IFB) in partnership with City of London Police’s Insurance Fraud Enforcement Department (IFED) and the Association of British Insurers (ABI) are warning the public to be alert to a potential rise in insurance claims scams that offer to recover financial losses caused by the pandemic.

With big numbers of people across the UK taking an economic hit because of the disruption caused by Covid-19, there are concerns members of the public will be financially desperate and more susceptible to falling victim to insurance claims scams.

Fraudsters or unscrupulous claims management companies (CMCs) could cold call or message victims with unrealistic offers to help recover financial losses caused by the disruption of Covid-19.

Insurance claims scams could appear in the form of claims phishing, where a victim is told they are entitled to compensation and then asked to provide their personal and financial information in order to process a claim. The scammer can then use these details to steal their identity or attempt to gain access to funds from their bank account.

Another insurance claim scam tactic is claims farming, where a victim is told they are entitled to compensation and encouraged to make an insurance claim. Often there is no ground to claim so the person is manipulated into providing false or misleading information leaving them implicated in a criminal act of insurance fraud.

With several big-name firms now marketing legal services for those who have suffered financial loss due to the pandemic, there is an indication that insurance claims for Covid-19 disruption may become common practice.

Considering the possible audience reach of sophisticated fraud networks and existing unscrupulous CMCs, there is a worrying potential for a nuisance covid-19 insurance claims scam culture to emerge.

“With the pandemic causing so many people to lose out financially, scammers and unscrupulous companies could try to exploit the situation. Nuisance Covid-19 claims scams could become the new PPI. We encourage everyone to be vigilant and to report evidence of insurance fraud to the IFB’s confidential Cheatline”. – Stephen Dalton, Head of Intelligence and Investigations at the Insurance Fraud Bureau (IFB).

The IFB, IFED and the ABI which work in tandem to tackle insurance fraud, are urging the public to be alert to insurance claims scams and to take action to report suspicious activity: 

  • If contacted out of the blue, never provide personal or financial information.
  • Only make a claim directly through the insurance provider and only use the contact details provided at the point the policy was taken out.
  • If support is required to manage a claim, use a reputable FCA-registered (Financial Conduct Authority) company or SRA-regulated (Solicitors Regulation Authority) Solicitors firm.
  • Report any suspicions of insurance fraud to the IFB’s confidential Cheatline service.
  • Take steps to protect personal data from being stolen to help to prevent being targeted. Guidance can be found at the Information Commisioner’s Office.

“Criminals will use whatever means they can to try and exploit innocent members of the public and will have no qualms in using national tragedies, including COVID-19, to commit fraud. It is therefore vital that people remain vigilant to the threat that fraudsters pose and be wary of unsolicited calls, text messages or emails about COVID-19-related insurance claims and offers of compensation. If in doubt – do without! Report any suspicions to the IFB’s Cheatline.” – DCI Edelle Michaels, Head of City of London Police’s Insurance Fraud Enforcement Department (IFED).

“Scammers thrive in times of economic uncertainty and target the vulnerable. The key is to be on your guard – if someone approaches you out of the blue with an offer that seems too good to be true, then it probably is. If in any doubt, then walk away.” – Mark Allen, Manager of Fraud and Financial Crime at the Association of British Insurers (ABI).

Insurance fraud can be reported confidentially and anonymously to the IFB’s Cheatline via its phone service which is powered by CrimeStoppers on 0800 422 0421 or online at insurancefraudbureau.org/cheatline