Tag: new drivers

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.

Pandemic practice makes perfect

Lockdown pass rates hit record high

Learner drivers passed their practical tests at the highest rate ever recorded during the pandemic, according to new figures released by the Department for Transport.

The data, which spans April 2020 to March 2021, shows that 49.8% of learners passed the test, up by 3.9% on 2019-20 figures.

There was more good news for learners taking theory tests, with 55.7% passing, the highest rate since 2013-14 and 8.6% higher than the previous year.

While many learners celebrated receiving their full driving licences, others were unable to take their practical car tests due to the pandemic, with 72.7% fewer practical tests taking place in 2020-21 compared to the previous year. Car theory tests were down by more than 50%.

Greg Wilson, Founder of Quotezone.co.uk comments: “Congratulations to all those who passed, just goes to show, practice really does make perfect as shown by the outstanding results.

“Many learners took advantage of less traffic on the roads to get out there and clock up more miles behind the wheel during the pandemic, plus increased time at home was the ideal opportunity to hit the books and study for the theory test.”

However, Wilson points out that after all their hard work there is now another challenge: “Newly qualified drivers often have trouble finding competitively priced insurance because they represent a higher insurance risk than seasoned motorists, and this is particularly true if the new driver also happens to be a young driver.

“That’s why we recommend newly qualified drivers use Quotezone.co.uk’s car insurance comparison service to shop around for better deals, by comparing quotes from a wide range of different providers side-by-side these motorists stand a better chance of finding a cheaper quote.

“Of course, there are additional steps newly qualified drivers can take to increase their odds of finding cheaper insurance too. For instance, it might be worth considering telematics insurance, which is often cheaper than a standard car insurance policy and opting for a car with a smaller engine and parking the vehicle in a safer location like a driveway or garage can also bring premiums down.”

Quotezone.co.uk compares quotes from over 110 UK car insurance providers, helping over 3 million users find a more competitive deal each year on everything from learner driver insurance to telematics insurance to cover for young drivers.