Young Drivers Targeted by Fake Insurance Policies

In a disturbing new rash of ghost car insurance scams, young drivers are being increasingly targeted by criminals selling fake car insurance. The scams are targeted at young drivers through social media.

Action Fraud, a fraud and cybercrime reporting center, has released reports showing that between November 2014 and October 2017 over 850 people have been targeted by so-called  “ghost broking,” or the sale of fake car insurance policies.

The total losses caused by these fake policies, to both organizations and the public, are thought to be around $779,000.

In addition to causing harm to the victims of these scam insurance policies, these ghost brokers also harm the insurance industry as a whole, driving up the cost of insurance premiums for all motorists.

How to Avoid Fake Insurance Scams

Generally, fake car insurance scams target men between the ages of 20 and 29. This is because men of this age, especially those who have only recently passed their driving test, are paying the highest premiums in the market due to the higher risk.

So, if you are looking for car insurance and are worried about ghost brokers, here are some tips for avoiding car insurance scams:

• Avoid insurers on social media – Cybercriminals are increasingly using social media to attempt to scam people with fake insurance. Whenever considering insurance cover, drivers are best advised to choose a reputable motor insurer and to ensure they check all of their paperwork.

• Be wary of heavily discounted policies – Ghost brokers trick unsuspecting victims with offers of heavily discounted car insurance, leaving them with a policy that isn’t worth the paper it’s written on and open to the severe harm that comes with driving without valid insurance. the unfortunate reality is, if a deal sounds too good to be true then it probably is.

• Use a recognized broker – There’s nothing wrong with fishing around through brokers and different insurance companies for the best deal, in fact, it’s the sensible thing to do. But most honest brokers will happily show you their credentials, have a proper website, and a registered business address that you can check.

Expert Training

The Northwest Driving School and Traffic School provide the Las Vegas community with live driving and traffic classes taught by seasoned instructors. All of our driving instructors have passed background checks, each automobile is DMV safety-approved and every member of the Northwest family is committed to providing excellent drivers ed and behind the wheel instruction.

At Northwest, you can expect to find outstanding classes, both on campus and behind the wheel, that are engaging, fact-filled, entertaining and geared toward success. We make no bones about it, we believe that Northwest provides the best driving lessons in Las Vegas, no matter your age or background. We are proud of the fact that 98% of our students pass their test on the first try. Call us at (702) 403-1592 to start your driving adventure with one of our expert instructors.

Written by:
Rich Heinrich,
Master Instructor, Emeritus

Author

Frankie Fopiano

Instructor and Office Administrator

Frankie works and karaoke's in Las Vegas but his out-of-doors-heart is still out East. Born in Boston, Frankie loves the snow and mountains. As an avid snowboarder, Frankie has never seen a snow day he didn't LOVE! A graduate from…Read More

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