‘Ghost brokers’ target young drivers

Police across the UK have today carried out dawn raids cracking down on ‘ghost brokers’ selling fake car insurance policies. A total of 27 people have been arrested following months of investigations by the City of London Police Insurance Fraud Enforcement Department.

RAC director of insurance services Kerry Michael said: “This is a new and worrying crime which preys on young drivers offering them cheap insurance rates with bogus policies. It is particularly worrying when you consider that many of the individuals taken in by ‘ghost brokers’ are those who can least afford the devastating financial and personal consequences of being involved in an accident without valid insurance.

“Whenever considering cover buyers are best advised to choose a reputable motor insurer and to ensure they check all of their paperwork. If a deal sounds too good to be true then it probably is.

“The RAC’s Report on Motoring 2013 identified that 71% of drivers aged 17 to 24 believe that motoring may actually become a rare luxury for them if costs continue to escalate. We are looking at ways to reduce the cost of insurance for young drivers including solutions like low cost telematics and we are working with the Government to understand what can be done to make owning and operating a car more affordable for this group of motorists.”