Drivers struggle to spot fake policies

With almost half of Northern Ireland drivers admitting they cannot spot a fake policy, car insurance experts at CompareNI.com have revealed how motorists can protect themselves from sophisticated ‘ghost broking’ scams.

Thousands of unsuspecting motorists are falling foul of fraudsters who pose as legitimate insurance brokers, using social media or messaging apps as a hunting ground to sell bogus policies – leaving victims unknowingly uninsured.

Cash-strapped young drivers are the primary targets, with conmen exploiting their financial vulnerability. This is particularly true for young people in Northern Ireland, who are forking out up to £3000 in annual premiums – more than anywhere else in the UK outside of London.

Victims of ghost brokers are often lured in by significantly cheaper prices, only to be sold a fake or invalid policy which they will likely only discover when they are stopped by police or try to make a claim.

Motorists caught driving without insurance face a £200 fine, vehicle seizure and six penalty points on their licence, which will likely lead to higher insurance premiums in future.*

A survey of 700 motorists by CompareNI.com found that 44% of drivers here are worried about being duped into buying fake insurance.

Alarmingly, while two thirds (66%) are aware of ghost brokers selling fake policies, just 49% are confident they could identify one of these fraudsters.

Almost all the respondents (96%) felt high insurance costs were making drivers more vulnerable to these types of scams. This finding reflects recent trends, with the Insurance Fraud Bureau reporting a 52% increase in ghost-broking activity between 2022 and 2024.**

As the prevalence of these scams grows, CompareNI.com is urging drivers to be on the lookout for telltale signs of ghost broking.

Ian Wilson, car insurance expert and Managing Director at CompareNI.com said: “Ghost broking is a growing problem for insurers and consumers alike, with sophisticated criminals using a variety of tricks to appear legitimate and gain the trust of unsuspecting motorists.

“It is worrying that half of the drivers we surveyed felt they couldn’t spot a ghost broking scam. Hopefully by discussing these dos and don’ts openly, we can protect more drivers from this growing crime which comes in many shapes and forms.

“By offering significantly lower premiums for example, scammers attract budget-conscious shoppers, especially young drivers, who may not have the experience or awareness of the risks associated with these ‘too good to be true’ deals.

“Some of the most common tricks ghost brokers use include pretending to take out a policy in a driver’s name and supplying them with forged documents, or purchasing a genuine policy but altering key details like a driver’s age, address or job title to falsely lower the premium.

 “Another method they use is to take out a policy legitimately, but then cancel it soon after without the driver realising.

“While drivers are aware of these types of scams, they don’t necessarily know the warning signs they should be on the lookout for when buying insurance.

“As a general rule of thumb, if a company on social media offers car insurance that is dramatically cheaper than other quotes on the market, it is likely a scam and needs to be investigated further.

“Drivers should always verify the broker’s credentials, check their policy documents thoroughly, avoid paying with cash or bank transfer, and if in doubt, contact the insurer directly.”

Top tips to help protect against ghost brokers

Verify the broker’s credentials:

Legitimate brokers in the UK must be registered with the Financial Conduct Authority (FCA). Looking up the broker’s name or company on the regulatory body’s website will ensure they are authorised to sell insurance.

Price seems too good to be true:

Brokers offering unrealistically cheap rates is a major red flag. Compare quotes from multiple reputable insurance companies to get a sense of the typical price range for your needs.

Selling exclusively through social media:

While many genuine brokers have social media accounts such as Facebook, TikTok or Instagram, they are unlikely to conduct the entire insurance transaction through those platforms. Be highly suspicious if the seller only wants to communicate via direct messaging and has no professional website or physical office.

Contact the insurer directly:

If you are unsure about the legitimacy of a broker or policy, contact the insurance company directly using contact details from their official website to verify the authenticity.

Avoid cash transactions or bank transfers:

Legitimate brokers will usually take payments via secure and protected methods, such as debit/credit card, direct debit or online portals. Be suspicious of anyone asking for cash payments or bank transfers.

Check policy documents thoroughly:

Always double-check all personal details on your insurance schedule to make sure the information is completely accurate. Ghost brokers sometimes alter information such as your address, occupation, vehicle type or driving history to lower the premium.

Check comparison websites:

If using an online comparison site, ensure it is reputable, has partnerships with well-known insurance companies and a high score from a recognised customer review site. 

CompareNI.com does due diligence on all insurance providers who have robust compliance checks, so they can provide drivers of all ages with the tools to shop around and find better quality car insurance at competitive prices.

References:

*https://www.compareni.com/press/penalty-points-can-drive-up-costs-by-26

**https://www.insurancefraudbureau.org/media-centre/ifb-news/2025/don-t-get-it-ghosted-new-drivers-warned-of-rise-in-fake-car-insurance-deals-on-social-media

Survey– CompareNI.com’s findings are based on a randomised survey of 700 respondents across Northern Ireland during May 2026, which represents a margin of error of approximately 5% at a 95% confidence level.

Photo credit: iStock Jacob Wackerhausen