Almost half of UK motorists unable to identify fake car insurance policies

Almost half of UK motorists say they would be unable to identify a fake insurance policy, raising concerns that drivers could unknowingly take to the road without valid cover.

Research commissioned by insurance comparison service Quotezone.co.uk found that 63% of respondents had never heard of ghost brokers, the criminals who sell fraudulent, manipulated or subsequently cancelled insurance policies. Some 47% said they were worried about becoming a victim.

Ghost brokers commonly advertise unusually cheap insurance before supplying policies that offer inadequate protection or no valid cover at all. They may forge documents carrying the branding of established insurers, or secure genuine policies using false information about a customer’s age, address or driving history to reduce the premium.

Another method involves purchasing a legitimate policy and cancelling it shortly after receiving payment from the customer. The motorist may continue driving under the mistaken belief that the vehicle remains insured.

Ghost broking activity increased by more than 50% during the two years to 2025, according to figures cited by Quotezone. The research also found that 11% of respondents had considered purchasing insurance through a social media platform, where fraudulent brokers frequently advertise.

Younger motorists appear particularly exposed. Separate Financial Conduct Authority research found that 49% of young drivers had purchased insurance through social media or messaging applications.

Platforms including Instagram, TikTok and WhatsApp can allow fraudsters to reach customers while avoiding the checks associated with regulated insurers and established comparison services.

Affordability remains a significant factor. Some 89% of motorists questioned by Quotezone believed high insurance costs made drivers more vulnerable to fraudulent offers, while 96% said further action was needed to protect consumers.

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Although average car insurance premiums have fallen from the sharp increases recorded in 2023, Quotezone said prices remained high because of rising repair and claims costs. Premiums also began increasing again during the second quarter of 2026, adding further pressure on drivers searching for cheaper cover.

A motorist found driving without valid insurance can receive a £300 fixed penalty and six points on their licence. Cases taken to court can result in an unlimited fine and disqualification, even where the driver believed they had purchased legitimate cover.

The consequences can be particularly severe for professional drivers. Penalty points, prosecution or disqualification can threaten a taxi or private hire driver’s livelihood and may also trigger close scrutiny from their licensing authority over whether they remain fit and proper to hold a licence.

Quotezone advised motorists to treat insurance advertised exclusively through social media with caution and to question sellers using only mobile telephone numbers or webmail addresses. Requests for cash payments or bank transfers, prices substantially below competing quotations and contact details that do not match regulatory records should also be treated as warning signs.

Drivers can check whether a company is authorised through the FCA Register and confirm broker membership with the British Insurance Brokers’ Association. They can also use the Motor Insurance Database to establish whether their vehicle appears to have valid cover.

Greg Wilson, car insurance expert and chief executive of Quotezone.co.uk, said the level of public unawareness was concerning because ghost brokers deliberately target people seeking lower prices.

He 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. But the consequences of buying invalid cover can be devastating. Driving without valid insurance not only leaves drivers unprotected should they have an incident on the road, it is a criminal offence which can result in hefty fines, penalty points and even prosecution. 

“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 Financial Conduct Authority 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."