Ghost brokers targeting young drivers on social media, warns Aviva

Figures suggest that almost a third of young drivers are falling for ghost broking scams 

A recent study by Aviva reveals a troubling trend: almost one in three young drivers is falling victim to “ghost brokers” who sell fake or invalid car insurance policies through social media.  

The scam, known as ghost broking, involves fraudsters posing as legitimate insurers to sell worthless coverage, leaving young drivers vulnerable to hefty fines, car seizures, and even driving bans. 

Complex and significant consequences of falling for ghost broking scams 

Aviva’s survey, conducted with 2,000 drivers aged 17 to 25, highlights the widespread presence of ghost brokers on social platforms. Nearly four out of five young drivers have encountered posts advertising cheap car insurance, with almost 90% of those who purchased insurance via social media reporting serious issues. Many find that their personal details were changed on the policy, which makes it invalid. Some discovered that their claims were declined because the coverage wasn’t adequate. Others say they were left without support from the seller when concerns were raised, while several reported being stopped by police, leading to fines or impoundment of their vehicle. 

A crisis of trust on social media 

Despite these numbers, young drivers remain divided on trusting social media sellers. While 63% said they would be suspicious of anyone offering cheap car insurance online, 15% reported they would not be, and opinions on the trustworthiness of social media sellers are split, with 48% considering them trustworthy. 

Some young drivers reported that they see no issue with buying insurance via social media, while others say they would trust an offer endorsed by a celebrity or influencer. 

Young drivers cite affordability and convenience as reasons for turning to social media for insurance. First-time drivers face huge insurance bills, with the average 18-year-old driver paying almost £3,000 per year for their car insurance, according to recent Confused.com data. 

Aviva’s warning: beware of “too good to be true” insurance deals 

Aviva’s own data supports the findings of the research. The company has identified concerns in 340,000 applications so far in 2023 and has removed or stopped 17,000 policies due to ghost broking or other forms of fraud, with nearly 7,000 cases linked to ongoing ghost broking investigations. 

Katriona Cunningham, Aviva’s policy application fraud lead, warns young drivers to be vigilant: “If a deal looks too good to be true, it probably is. 

“If someone offers cheap insurance on social media, they are likely fraudsters. Avoid anyone promoting car insurance through social media platforms,” she advised. 

Image: Canva 

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk