Insurance Scams.

An insurance scam could have left around twenty thousand motorists uninsured according to a report by the BBC.
‘Ghost brokers’ are targeting young drivers who are struggling to afford high insurance premiums, as well as communities where English is not the first language and where residents may not understand how the UK insurance system works.
The so-called ghost brokers advertise cheap insurance through the Internet or small ads in the hope of attracting people looking for a cheap deal.
However, their insurance policies may be fake or may have been acquired from a genuine insurance company at a cheap rate by changing details such as age, which could make the policy more expensive.
Of course, with false details, the policy will be invalid.
Major UK insurance company Axa estimates that around 20,000 motorists may have an insurance policy that has been obtained fraudulently.
City of London police is opening a new unit dedicated to tackling insurance fraud and has pledged to make ghost broking a priority.
Insurance firms recently criticised the Government’s rejection of measures to reduce the level of insurance claims by young drivers.
The Association of British Insurers (ABI) wanted a zero alcohol limit to be introduced for young drivers and a ban on driving between 11pm and 4am, but the proposals were rejected.
It also wanted drivers under the age of 25 to have to undergo a 12-month learning period before being allowed to take their driving test.
Mike Penning, the road safety minister, said the Government would not introduce plans which would “unfairly penalise responsible young people who rely on driving to get to work or college”.
In an effort to reduce insurance premiums for young drivers some genuine insurance firms are trialling black box technology which monitors a driver’s behaviour.
Careful driving can then be rewarded with lower premiums.