Tag: Op Drive Insured

Drivers warned to avoid bogus car insurance deals on social media

Over 21,000 fraudulent policies identified

  • The Insurance Fraud Bureau (IFB) is warning consumers to avoid an increasingly popular scam known as ‘Ghost Broking’, which sees fake car insurance being sold on social media, leaving motorists out of pocket and driving without insurance.
  • The insurers working with the IFB have reported over 21,000 fraudulent motor insurance policies over 12 months which could be linked to the scam.
  • The warning comes as 45 police forces take to the road for Op Drive Insured, in a national week of action to seize uninsured drivers’ vehicles. 

The Insurance Fraud Bureau (IFB) is warning drivers to avoid bogus car insurance deals on social media, as it reveals over 21,000 fraudulent motor insurance policies were reported to it by insurers in the past 12 months which could be linked to the scam.

‘Ghost Broking’ is a growing scam, which involves fraudsters pretending to be Brokers in order to sell unrealistically cheap and completely fake policies.

The bogus deals are often advertised via Facebook and Instagram with victims ranging from young and new drivers, to communities less familiar with UK insurance laws. The scam not only leaves victims out of pocket, but facing serious penalties for driving without insurance.

The IFB – which acts as a central intelligence hub for insurers to tackle organised fraud – received reports of 21,169 fraudulent motor insurance policies in the past 12 months which could be linked to ‘Ghost Broking’ – equating to nearly 60 bogus policies being generated each day.

With 45 police forces executing Op Drive Insured this week in a national crackdown on uninsured motorists, the IFB is urging drivers to watch out for ‘Ghost Broking’ scams or face the consequences for driving without insurance.

Stephen Dalton, Head of Intelligence and Investigations at the IFB, said: “Clearly, fraudsters are attempting to take out a high volume of fraudulent car insurance policies so they can profit at the expense of insurers and honest consumers. This is a serious problem and I believe the figures we’ve uncovered only begin to scratch the surface. 

“With police forces upping their efforts to crackdown on uninsured driving, it’s essential that consumers aren’t tempted by ‘too good to be true’ car insurance deals on social media. They’re entirely fake and will result in the driver’s vehicle being seized for no insurance.

“If anyone has seen evidence of a suspicious motor insurance deal, it should be reported to our confidential Cheatline on 0800 422 0421 or at www.insurancefraudbureau.org.”

Ghost Brokers’ operate by tempting victims with unrealistically cheap prices up front, despite the fact insurance is meant to be priced based on the risk of the individual. Once they’ve caught their victim’s attention, they’ll encourage contact through popular end-to-end encrypted messaging software such as WhatsApp to keep illegal dealings in private.

The IFB has seen its percentage of investigations into ‘Ghost Broking’ double in recent years and believes tens of thousands of motorists could unwittingly be driving with fraudulent cover, who will face serious consequences when caught out by the police.

So far this year over 100,000 uninsured drivers have had their vehicle seized.

Drivers without valid insurance also face a £300 fixed penalty notice and six licence points. If the case is taken to court, they could also receive an unlimited fine and/or a driving ban.

Detective Chief Inspector Edelle Michaels, Head of the City of London Police’s Insurance Fraud Enforcement Department (IFED), said: “The Op Drive Insured campaign has been an important reminder to the public of the consequences of driving uninsured. Whilst some drivers may knowingly be uninsured, there are many who do not realise that they are driving without valid insurance, having purchased their policy through a ‘Ghost Broker’.

“IFED has investigated a number of cases in 2021 which have exposed the immoral tactics used by these criminals to catch out their victims, including two young men who took advantage of their peers being charged high insurance premiums, and an individual who pretended to help those looking to insure their first vehicle in the UK.

“It really is crucial to check that the person you are speaking with is the real deal. It is quick and easy to find out if a broker is authoriser, simply check the FCA or BIBA website – it could end up saving you a lot of money and help you to avoid issues in the long run.”

Avoiding fake car insurance deals

  • Consumers are urged to avoid deals on social media or messaging apps and to only purchase car insurance through reputable sellers.
  • If buying through an Insurance Broker they should check the seller is registered with the British Insurance brokers’ Association (BIBA).
  • If buying directly through an insurer they should appear as a registered member of the Motor Insurers’ Bureau (MIB).
  • Checks can also be made to see Insurance Advisors are registered with the Financial Conduct Authority (FCA).
  • Anyone with evidence of an insurance scam should report it to the police and the IFB’s Cheatline which is quick, easy and confidential to use. The Cheatline can be contacted online or via a phoneline (powered by Crimestoppers) on 0800 422 0421.
  • Insurance fraud reports can also be submitted to Action Fraud.

Police launch national campaign to protect road users from uninsured drivers

  • Roads policing units are launching Op Drive Insured from today (26 October) to 1 November, which will see enhanced enforcement activity to reduce the level of uninsured vehicles on UK roads.
  • Uninsured and untraced drivers cause nearly one in every five road traffic collisions and push up insurance costs for law-abiding motorists.
  • MIB (Motor Insurers’ Bureau) which compensates victims of uninsured drivers has seen claims fall 26% since 2016, however there are concerns the economic impact of Covid-19 could cause more people to risk driving without insurance.
  • Every four minutes in the UK an uninsured vehicle is seized.

From today until 1st November, all of the UK’s 43 police forces are set to engage in a national effort to help reduce uninsured driving levels.

 ‘Operation Drive Insured’ – a week-long campaign developed by MIB (Motor Insurers’ Bureau) in partnership with the National Roads Policing Operations, Intelligence and Investigation (NRPOII) committee – will see increased roads policing activity to detect and seize uninsured vehicles across regions.  

Each year in the UK over 130 people are killed and 26,000 are left injured in collisions caused by uninsured and untraced drivers, linking to nearly one in every five road traffic collisions.

Evidence also shows drivers without insurance are more likely to commit a ‘hit and run’ and be involved in other crimes, be it using a stolen vehicle, driving while disqualified or substance abuse.

MIB, which is funded by insurers and ultimately consumers to provide financial support to victims of uninsured and untraced collisions, paid out £322 million in compensation in 2019.

Whilst figures from the Department for Transport indicate these collisions cost the economy a further £2 billion a year in emergency services, medical care, loss of productivity and property damage.

The number of claims for compensation from victims of uninsured drivers have fallen 26% since 2016. However, with so many people suffering financial hardship due to the disruption of Covid-19, there are growing concerns that this could result in more people breaking the law and driving without insurance.

Anna Fleming, Chief Operating Officer at MIB, said: “We’ve made great strides in getting more people to drive insured in recent years, but the sad reality is with Covid-19 putting so many people under financial strain, uninsured driving levels could creep up.

“Everyone suffers the consequences of uninsured driving. We’re fully committed to our partnership with the police so we can get as many people as possible to drive insured to make roads safer and fairer for everyone.”

Commander Kyle Gordon, Head of NRPOII, said: “Many people will see uninsured driving as a victimless crime at best, or as only impacting on the profits of large insurance companies at worst. This is not the case. 

“We know from our work in roads policing that uninsured drivers are statistically significantly more likely to cause a death or injury on the road, which too often sadly brings devastation to victims, families and communities up and down the country. They are also frequently involved in wider road crime.

“Protecting the public and keeping our roads safe for everyone is our priority and removing uninsured drivers from our roads helps to do just that. This is why all police forces are acting to take uninsured drivers off the road every single day.”

Last year 137,410 vehicles were seized for no insurance which equated to one seizure every four minutes.

Police can access the Motor Insurance Database (MID) which is a central record of all live motor insurance policies, to quickly spot if a vehicle appears to be uninsured. If disputed by the driver, MIB can quickly liaise with insurers to confirm if valid insurance exists.

Drivers without insurance face their vehicle being seized and potentially crushed, along with a £300 fixed penalty notice and six licence points.

They can also be referred to court and face an unlimited fine and a driving ban. Uninsured convictions also show on basic Disclosure and Barring Service (DBS) checks which can impact employment prospects.

To check if a vehicle is showing as insured on the MID, drivers can look for free at www.askmid.com.

Tips on finding more affordable car insurance

There are several things drivers can do to help find more affordable car insurance deals. According to the Association of British Insurers (ABI), this includes:

  • Choosing a less powerful vehicle.
  • Getting a ‘black box’ or ‘telematics’ to help demonstrate how safe the driver is.
  • Driving more safely to avoid collisions, prevent penalty points and protect a ‘No Claims Discount’ (NCD).
  • Using price comparison sites or a BIBA-registered Broker to find a good deal.
  • Limiting the car’s use and reducing annual mileage.
  • Protecting a car from theft such as by using an alarm or immobiliser and keeping it in a garage.
  • Paying an insurance premium up-front.
  • Considering a higher excess (the cost paid in excess of what an insurer pays if a claim is made).
  • Complying with legal requirements by being honest to an insurer about changes to the use and condition of a vehicle.