Three in ten young drivers have purchased car insurance from a ghost broker

Nearly one in three (30%) young drivers have purchased car insurance from someone operating illegally on social media platforms by selling invalid or fake car insurance, according to an Aviva survey of 2,000 drivers aged 17-25¹. The research was conducted to highlight the issue of ghost broking, where fraudsters pose as legitimate insurance companies, illegally selling fake or invalid insurance to young drivers and motorists who find it difficult to buy insurance.

According to the insurer, those who purchased cover via social media almost certainly dealt with a ghost broker and likely bought worthless insurance. This puts them at risk of having their car seized, facing an unlimited fine and receiving a driving ban.

Of those young drivers who purchased car insurance via social media, 89% had serious problems with their policy. The types of problems identified by young drivers include:

• 49% said their details (e.g. age, address) were misrepresented on the policy, meaning it was not valid;
• 22% said they made a claim which was declined because they weren’t properly insured;
• 21% said the seller didn't help them when they raised concerns;
• 17% said the police stopped them and impounded their vehicle or issued a fine for driving without adequate insurance.

Aviva’s efforts to combat fraud

Aviva’s own fraud and ghost broking data supports the young driver research. Aviva has detected 340,000 policy applications with fraud concerns so far this year – and has stopped or removed a further 17,000 policies due to fraud. In addition to this, Aviva has also linked 7,000 cases this year to open investigations into known ghost broking cases.

Katriona Cunningham, Policy Application Fraud Lead at Aviva, said, “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% 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.

“I would say to all young drivers: if a deal looks too good to be true, it probably is. If you engage with someone offering cheap insurance on a social media site, they are probably fraudsters. Avoid anyone offering access to cheap car insurance via social media.

“If you suspect you’ve encountered a ghost broker, report it to the Insurance Fraud Bureau or Action Fraud so they can investigate and prevent others from being scammed.”

Young drivers targeted on social media

Young drivers gave a range of responses for why they would look for insurance on social media, including one in five (19%) who say they “can’t see any reason not to buy insurance on social media” – demonstrating a lack of awareness of the risks and penalties involved.

Once on social media, young drivers are seized upon by ghost brokers, with nearly four out of five young drivers (77%) reporting that they have seen a social post advertising cheap car insurance.

Young drivers are split on how trustworthy those individuals are, with 48% saying the people approaching them with offers of cheap insurance are trustworthy, and 48% saying they are not trustworthy.

That said, 63% agree they “would be suspicious of anyone offering cheap car insurance on social media,” while only 15% said they would not be suspicious.

Aviva has the following tips to ensure a policy is legitimate:

• Too good to be true? It probably is. Beware of super cheap deals.
• Verify the broker: Check BIBA and FCA registrations.
• Check the insurer: Ensure they’re in the Motor Insurers’ Bureau.
• Avoid social media deals: Legit brokers don’t operate solely on TikTok or Snapchat.
• Spot red flags: Watch out for bad spelling, vague details, and messaging app requests.
• Do your research: Contact insurers directly and check the Financial Services Register.
• Report suspicious activity: Suspect ghost broking? Report it to the IFB’s CheatLine.

Anyone suspecting they have been a victim of ghost broking or other fraud can report their concerns to CheatLine or by calling 0800 422 0421.

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References:

^{1. The research was conducted by Censuswide with 2,000 drivers aged 17-25, between 9.10.2024 - 14.10.2024. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.}

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