Whether you’re buying anything from a new watch to a television or even an insurance policy for your classic motor, the old adage ‘if it looks too good to be true… it probably is’ often proves to be correct.
Beware the Ghost Broker, a new type of fraudster offering what looks like unbelievable value insurance. In fact, their cover is not worth the paper it’s written on.
Ghost brokers sell fake insurance, pretending to give you cover. However, they do not pay out if you make a claim. The numbers of these fake insurers is on the rise in the UK, with the Insurance Fraud Bureau labeling it a huge problem.
How the scam works
Ghost brokers are known for targeting people who have high insurance premiums, such as the more mature, and these people are often completely unaware that their cover is false.
These fraudsters have been known to apply to legitimate insurance companies using some of the policy holder’s correct details. However, they crucially change certain key information to reduce the cost.
If you should have an accident whilst insured by one of these tricksters, the consequences are extensive.
Because you aren’t actually covered you will be liable for all damage you cause, which could include paying compensation. Also, all of the money you have paid for the fake insurance will be worthless and you will still need to stump up for a brand new, proper insurance policy.
Avoiding the Ghost Brokers
To make sure you don’t fall victim of these fraudsters:
- Trust your instincts, if it looks too cheap it is probably a scam.
- Don’t buy insurance from unusual sources, e.g. social media.
Our classic cars are special and often expensive, so it’s important to insure them correctly. This may mean spending that little bit extra for real peace of mind.
In the meantime, for all of your insurance needs, call us today on 0121 248 9304