Nearly a third of young drivers under 25 in the UK have been scammed into buying fake car insurance on social media, according to Aviva, the nation’s largest car insurer.
Aviva’s survey of 2,000 drivers under 25 revealed that 30% had purchased fake insurance through social media in a scam known as “ghost broking.” These ghost brokers pose as legit intermediaries, luring young drivers who are often looking for cheaper coverage. But what they’re selling is usually just a worthless piece of paper.
Aviva found that almost 90% of young drivers who bought insurance through social media faced serious consequences. Some had their personal info (like age and address) altered without their knowledge, which made their policies invalid. About 22% had claims denied because their insurance turned out to be fake, and 17% were pulled over by the police for driving without valid insurance.
So far in 2024, Aviva has cancelled nearly 17,000 policies due to fraud, with close to 7,000 cases linked to ghost broking and application fraud still under investigation. Aviva warns that buying insurance from social media is almost a guarantee you’re dealing with a ghost broker, leaving you without actual coverage.
Driving without valid insurance could lead to hefty fines, a driving ban, or even having your car seized. Aviva’s Katriona Cunningham explained, “Young drivers aged 17–25 are the first generation to grow up with social media being an integral part of their daily lives.
"It is understandable, then, that when looking for car insurance, 30 per cent of young drivers said they turn to social media.
"However, ghost brokers are actively targeting young drivers on social media platforms, offering cheap-but-worthless car insurance that puts the young driver at risk of being uninsured."
Tips to avoid ghost brokers:
- Be wary of deals that seem too cheap—they’re probably too good to be true.
- Verify brokers through the British Insurance Brokers’ Association or the Financial Conduct Authority.
- Check if the broker is listed in the Motor Insurers’ Bureau.
- Steer clear of brokers who only operate on social media, and watch for bad grammar, vague details, or requests to communicate through messaging apps.
