Nearly half of drivers unsure they could spot fake insurance policy

Almost half of UK motorists believe they would be unable to identify a fake motor insurance policy, according to research published by price comparison website Quotezone.

The survey found that 47% of drivers do not think they could spot fraudulent insurance cover, while 63% said they had never heard of so-called “ghost brokers” who sell fake or invalid motor insurance policies.

Ghost brokers typically attract customers with heavily discounted premiums before providing invalid cover or policies that fail to offer the protection motorists believe they have purchased.

Quotezone said the issue is becoming more prominent, with ghost broking activity increasing by more than 50% in the two years to 2025.

It also found that 11% of those questioned admitted they had considered buying insurance through social media platforms, although this figure is much higher amongst younger age groups.

Greg Wilson, chief executive at Quotezone, said: “The number of people unaware of ghost brokers is a concern, especially since almost half of those questioned feel they’d be unable to spot a fake car insurance policy.

“Ghost brokers prey on drivers looking for a bargain and with the cost of living still squeezing household budgets, it’s easy to see why a cut-price deal might seem tempting.”

Red flags

The research also revealed that 47% of motorists are concerned about becoming a victim of the scam.

Quotezone said some ghost brokers create fake insurance documentation using legitimate insurer branding, while others obtain genuine policies using false information before cancelling them without the customer’s knowledge.

Motorists caught driving without valid insurance can face a £300 fixed penalty and six penalty points, while more serious cases can result in unlimited fines and disqualification through the courts.

Wilson said: “It’s a topic that UK drivers are becoming increasingly concerned about. The recent Quotezone data shows 47% are worried about being duped by fake insurance – making it so important to know the red flags and how to double check it’s safe.

“There are crucial checks drivers can do to help ensure their policies are legitimate. Searching for insurance through a trusted comparison site or insurance provider is key. Always sense check the price against multiple sources and look for a valid FCA registration number.

“Taking a few extra minutes to verify a policy could save thousands of pounds and protect drivers from fines, penalty points and even a criminal record.”