Fraud Alert

Car Insurance Scam Targeting Young Drivers

With the increasing cost of car insurance for young drivers, Police have been made aware of the following scam;

A young car driver (or family member) looks for insurance on the internet and finds that a particular website is advertising insurance for young drivers. The quotes provided (both over the telephone and internet) are often hundreds of pounds cheaper than any competitors. In actual fact the prices are “too good to be true.”

The young car driver (or family member) pays for the insurance and genuine looking documentation is received. The driver therefore genuinely believes they are insured.

However, because this company is not registered with the Motor Insurer’s Bureau they are not legally entitled to provide insurance and therefore the driver’s “insurance” is invalid. They are NOT insured.

To deceive police and prolong the scam, the fraudulent insurance company will often pay other genuine insurance companies to insure the vehicle but in different names, “stealing” the names of genuine people who are much older and live in areas with low crime rates - therefore the premiums are lower and the fraudulent insurance company pockets the difference. The vehicle is shown on the Police National Computer as insured but this insurance is not valid.

Before taking out car insurance check that the company is registered with the Motor Insurer’s Bureau.

Remember, if a car insurance quote for a young driver is vastly lower than any others, it is probably “too good to be true.”