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The ‘Ghost Broker’ is fast becoming an easy way to commit car insurance fraud, and especially in these economic times.

These fraudsters are posing as insurance brokers and are mostly targeting young drivers and newly arrived immigrants etc.

It is a known fact that tens of thousands of drivers are unaware that they are driving around with no valid car insurance. The documents are forgeries or the insurance companies have been provided with false information by the ‘broker’ in order to obtain reduced premiums. They usually advertise via classified websites, newspapers and fliers guaranteeing huge discounts.

It is normal procedure for a prospective client to be asked a series of questions, for example, driving history, i.e convictions, accidents, date of birth, address and post code, where the vehicle is parked, does it have an alarm etc. All of these will determine the level of premium. So, if you have had any accidents or convictions, or you are a new driver the information past on to insurers is not what you stated, and it will be doctored in order to obtain a much lower premium. Alternatively you will receive a forged policy document. The trouble only starts when you have a claim, and that’s when you find out that you are not insured correctly or not at all, either way the consequences are dire.

If you wish to check if your vehicle is in fact insured go to the Motor Insurance Database, If you still suspect that you have been duped, check your policy documents to see that the information you provided is correct. A lot of people don’t bother to check their policy schedule and assume that all’s OK!

For the most part Insurance brokers are ethical and don’t use dodgy methods to beat their competition, but be very careful should you receive a quote that is drastically below that of the average, and especially if you are a new driver.

Always in any case check your policy schedule and look out for any mistakes such as; incorrect registration number, make and model, your date of birth and previous driving convictions if any. Typing errors happen and it’s easier to have them corrected now rather than wait until you have to make a claim when errors such as these can cause unnecessary delays and inconvenience.