Insurers uncovered 212,000 illegal insurance policies last year, equivalent to over 4,000 policies per week and more than 570 per day on average.
This is according to the Association of British Insurers (ABI) who said that the figures should serve as a warning to anyone thinking of trying to 'cut corners' to lower their premium.
The data gathered by the ABI revealed the common lies used by drivers to get an illegal insurance policy. One of these is giving the address of a friend or relative who lives in a lower-risk area.
Other examples include people ‘forgetting’ to declare past accidents and pretending to be the main driver when it’s actually their son or daughter. The latter trick is a scam commonly referred to as ‘fronting’.
The ABI has also warned drivers about the presence of ‘ghost brokers’ – fraudsters who in a seemingly-legitimate way claim to offer cheap insurance policies that aren’t actually real. Not only are the fraudsters themselves breaking the law, but drivers who take on their policies are driving without valid insurance, probably unknowingly. These drivers could potentially have their car confiscated or even crushed as a consequence.
At present the Insurance Fraud Bureau is reportedly dealing with 26 more suspected ghost broker scams.
The ABI’s Fraud and Financial Crime Manager, Mark Allen, commented: “Insurers recognise that innocent mistakes and oversights happen. But anyone lying to get cheaper motor insurance, or tempted by cheap insurance offers without first checking that they are genuine, risks driving illegally.”
