As the cost of living goes up, people are desperate to look for ways to save money on essentials, including their car insurance. It is always recommended to shop around to get the best price. However, you shouldn’t always go for the cheapest price that you find, especially if it seems too good to be true. You could be in the midst of a ghost broker.


The surge in ‘ghost broking’

Recently, there has been a surge of ‘ghost broking’. The term ‘ghost broking’ refers to the phenomenon whereby fraudsters will offer very cheap insurance policies that would eventually be revealed as fake. They do this through one of three ways:

  1. Forgery – fraudsters will forge insurance documents to make it appear as if a real policy has been taken out for the client
  2. Falsification – fraudsters will falsify the client’s details to bring the price down and when the client tries to make a claim, they will be subject to rejection by the insurer
  3. Cancellation – fraudsters will take out a real policy but cancel it shortly after

Who are the victims?

These so-called ghost brokers pretend to be a legitimate insurance brokers firm and target young people who are wanting to buy insurance for their first car, for instance. Ghost brokers will usually find their victims through social media. These victims tend to be people who haven’t purchased insurance before or have very limited knowledge of it. Ghost brokers will pretend to be a money-saving forum or a student website in order to capture their victims. This article goes into more depth about the ways in which ghost brokers capture their victims.

According to the City of London Police, those who have fallen victim to this scheme do not realise that they have purchased a fraudulent insurance policy until they make a claim or get stopped by police. When this happens, the victims are very likely to take on points on their driving license or have to pay a fine for driving without insurance. Their vehicle could also be impounded if the police choose to use this as punishment instead.

Identifying a ghost broker:

The BBC and the City of London Police have compiled a list of ways to identify if you have been in contact with a ghost broker. To avoid falling victim to this fraudulent activity, follow these steps:

  1. Be wary of those who primarily use their social media or WhatsApp to scout clients.
  2. If the price is too good to be true or incomparable to any other rate you have seen, steer clear. It is highly likely to have come from somebody who does ghost broking for a living.
  3. Do your research into the firm and determine if they are real or not. You can do this by checking official review pages or checking their website. The FCA also has a service where you can check if the company is listed on the official financial register. Access this via
Ghost broking as a way to make a living


At Alternative Insurance Brokers, you can be sure of the legitimacy of our services and products. We are trustworthy and reliable, as proven by the hundreds of people who have reviewed us before. Speak to a member of team today to find out how we can fulfil your insurance needs. From motor, to home to commercial, we can provide cover for any of your needs. Call us on 0161 388 2520 today for more info.