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Ghost broking surge: 30% of UK young drivers bought fake motor cover; enforcement exposure, misrepresentation issues, and government/FCA action on premiums

Published on: 13 November 2024

Published by a Law360 reporter
Legal News
Article summary

On 11 November 2024, the insurer reported that three in ten of the 2,000 motorists aged 17 to 25 had obtained car cover from individuals unlawfully selling bogus or invalid policies on social media platforms—a practice known as ghost broking. The survey, carried out by Censuswide in October 2024, found that nearly nine in ten (89%) of young motorists who bought insurance online experienced a range of issues with their policy. These included one in six (17%) saying they had been stopped by the police for driving without cover, and nearly 50% stating their details were misrepresented on the policy, rendering it not valid. Katriona Cunningham, policy application fraud lead at Aviva, said it was ‘understandable’ that young drivers were...

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