Sheffield broker warns customers to beware of ghost brokers

2nd August 2024

News Business Member News Policy & Regulation

Broker advice to combat ghost brokers

Sheffield chartered broker IFM Insurance is urging local residents be extra vigilant when buying motor insurance. This comes at a time when reported cases of customers being tricked into purchasing fake motor insurance policies by ghost brokers rose by 6 year-on-year in 2023, according to the latest data from the Insurance Fraud Bureau (IFB).

Ghost brokers are fraudsters who sell cheap motor insurance deals but issue policies that aren’t worth the paper they're written on.

Ghost brokers often operate through websites or small ads offering cheap insurance. They target people on a budget and communities where English is not the first language. They will often issue completely fictitious policies.

IFM top tips:

• Use a chartered broker to source the best policy to meet you needs
• Beware of buying insurance policies from unusual sources such as social networks, newsagents or bars and pubs
• Check your insurer is a Motor Insurers’ Bureau (MIB) member

Alister Smith a Director of IFM Insurance Brokers said: “This is an insurance scam which is being carried out by fraudsters. So the message to customers is be extra vigilant when buying motor insurance particularly from unfamiliar sites. It also reinforces the importance of buying insurance based on value not on price. Customers can always contact their local broker who can source robust insurance from reputable and reliable insurance companies.”