Published 13 August 2026
How to spot a ghost broker…
What is ghost broking?
Ghost broking is when fraudsters, scammers and opportunists, pose as legitimate insurance providers or brokers. They often use social media to sell policies that are fake, invalid or bought using false information, leaving drivers uninsured and at risk of financial and legal penalties.
Why do ghost brokers target young drivers?
It’s an informed tactic…
- Only 32% admitted to being unaware that if caught within the first two years of passing their test, they could face a driving ban that requires them to reapply for their licence and retake both tests.
- Only 39% of young drivers are aware that driving with fake or invalid insurance could lead to their vehicle being seized.
- Only 51% know they could be personally (and financially) liable for accident or injury costs if involved in a road traffic accident.
Meanwhile…
- 84% of parents admit they've never even heard of ghost broking themselves.
- 82% of parents believe young drivers don't have the resources to mitigate the risks.
- 72% of parents would welcome more guidance on how to talk about it.
To help combat the issue, we’ve launched an online quiz, developed in partnership with Francis Naokes, a driving school instructor and influencer, designed to help new, learner, and young drivers to recognise the warning signs of a scam before they buy car insurance.
Inspired by the DVSA hazard perception test, our quiz asks users to spot warning signs across social media adverts, emails and WhatsApp messages, before receiving a score and practical advice on how to stay safe.
“Ghost broking cost me £24,000. I wish I hadn’t fallen for a TikTok insurance scam”
"I passed my driving test when I was 17 and, soon afterwards, I fell for a ghost broker scam I found on TikTok. The person claimed they could get me a much cheaper insurance quote for my 1.4 litre Vauxhall Corsa. They charged me a £100 administration fee and said they could reduce my monthly payments to around £30.
After I paid, they sent me what looked like a valid insurance cover note, so I believed everything was legitimate. I drove thinking I was fully insured until I was pulled over by police near Longton McDonald's in Stoke. That's when I found out the insurance wasn't valid.
The police seized my car and I received six penalty points. Because of that, I had to retake both my theory and practical driving tests. I never got the car back.
The car was a brand new 23 plate Vauxhall Corsa worth just over £24,500, so it was a huge financial loss. I've since bought another car, but this time I arranged the insurance myself to make sure everything was genuine. I wish I'd never trusted someone on TikTok offering insurance that seemed too good to be true.”
Joshua Wakelin
Age 20, from Stoke
This case study is based on a real consumer experience, gathered through independent research conducted as part of our ghost broking awareness campaign. The individual featured is not an Allianz customer and was compensated for sharing their story.
Francis Naokes of Driving School TV says:
"Learner drivers are tested on everything from stopping distances to road signs before getting behind the wheel. But nowhere are they taught how to spot a fake insurance policy or avoid ghost brokers, which have affected some of my students.
The test we've created helps fill that gap by giving new drivers the skills to identify financial hazards before they become victims."
How do ghost brokers get in contact?
Ghost brokers often operate online, using social media platforms, websites, and email to reach potential victims. They may also use word-of-mouth referrals to gain trust.
They typically target individuals who are looking for affordable insurance options, such as young drivers or those with limited insurance knowledge.
They will often offer low premiums, pressure you to pay quickly (often via direct transfer), and provide a lack of official documentation.
How do you know you’ve been sold a fake policy?
Unfortunately, drivers often won’t discover the scam until they attempt to make a claim and find out their policy is invalid. So, the best way to stay safe from scams, is to know how to spot them.
If you’ve bought through a broker, make sure to confirm your policy details directly with the insurance provider. Ask them to verify:
- Contact information
- Coverage terms
- Policy registration
You can also check your policy is valid and activated on the Motor Insurance Database.
What happens if you’re scammed by a ghost broker?
Counterfeit motor insurance policies appear legitimate but offer no real coverage, meaning drivers are left uninsured and at risk.
Falling victim to ghost broking can lead to legal challenges for you, such as unknowingly driving without valid insurance, which is against the law in the UK.
This may result in financial fines, points on your licence, responsibility for accident-related costs, total loss of licence, and potential difficulties in securing insurance in the future.
Ghost broker warning signs
- Prices significantly below market rate.
- Pressure to pay by bank transfer or cash.
- Policies sold through unofficial channels such as WhatsApp or Instagram DM.
- Documents that contain spelling errors, incorrect insurer details, or can’t be verified on the Motor Insurance Database.
- Brokers with no FCA registration number.
Are online insurance scammers really a threat?
The detail is in the data…
- We combat around 13,000 fake policies each year, rising by 33% between 2022 and 2025.
- Almost two-thirds (63%) have seen cheap insurance adverts on social media.
- 60% of parents worry their child will fall victim to insurance scams.
Ben Fletcher, Director of Fraud and Financial Crime at Allianz UK, said:
"Ghost broking is one of the fastest-growing forms of insurance fraud in the UK, and young drivers are being targeted through social media. Our research shows there is still significant confusion around how these scams operate and how to identify them. Insurance fraud pushes up the cost of policies for honest customers, so we continue to do what we can and take action, combatting £15 million in policy fraud last year. This demonstrates the value of insurers and the work we do to protect our customers."
"We know education is just as important as tackling the problem, so we hope our call to strengthen the driving test with insurance education will help target young drivers before they hit the road. We've also launched our own quiz designed to help people spot the red flags before they become victims, think twice before buying insurance from unofficial sources and avoid paying more in the long run. As the saying goes – if it's too good to be true, it probably is."
Take action against ghost broking
Ghost broking is an issue that needs careful attention and action, so we’re here to help you spot and stay clear of scammers. Together, we can create a safer and more reliable insurance environment for everyone in the UK motor insurance market.
Try our five-minute free quiz here, to see if you can spot a scammer..
Frequently Asked Questions (FAQs)
Ghost broking is when fraudsters pose as legitimate insurance providers - often on social media - to sell policies that are fake, invalid or bought using false information. Customers often only discover the scam when they try to make a claim and find their policy is worthless.
Ghost brokers typically target individuals looking for affordable insurance options, such as young drivers or those with limited insurance knowledge.
Key warning signs include prices significantly below market rate, pressure to pay by bank transfer or cash, policies sold through unofficial channels like WhatsApp or Instagram DMs, documents with spelling errors or incorrect insurer details, and brokers with no FCA registration number.
Driving with fake or invalid insurance could lead to your vehicle being seized, personal liability for accident or injury costs, fines and points on your licence. Plus, if caught within the first two years of passing your test, a driving ban requiring you to reapply for your licence and retake both tests.
Confirm your policy details directly with your insurer by verifying contact information, coverage terms, and policy registration. You can also check the Motor Insurance Database to ensure your vehicle is listed as insured.
Allianz UK combats around 13,000 fake policies each year and tackled £15 million in policy fraud last year. So, we’ve launched a free online quiz to help young drivers spot scams, and is recommending the DVSA include guidance on how to buy insurance in the theory test.
The five-minute free quiz is available online and is designed to help learner and young drivers recognise warning signs across social media adverts, emails and WhatsApp messages before they buy insurance cover.
Parents should share the Allianz UK quiz with teenagers learning to drive, talk openly about the risks of ghost broking, and encourage their children to only purchase insurance through licensed brokers and direct channels.