CASH SMART

We help you make savvy choices, so your hard-earned goes that bit further 3 ways to... get savvy on insurance scams

Recent research by general insurer LV= has revealed that 91% of adults in the UK don’t know what so-called ‘ghost broking’ is – so we’re giving you the lowdown. 1 Be wary of cheap premiums

Ghost brokers are fraudsters who usually pose as online insurance brokers and sell fake car insurance policies. They’ll typically try to lure in victims by claiming to offer car insurance with cheap premiums. However, if you buy a policy from them you won’t have valid insurance cover, which is a legal requirement. The consequences of driving without valid insurance can include: your car being seized by the police, being fined and needing to pay for any damage caused while driving without insurance.

2 Always check credentials

Ghost brokers are exploiting victims’ lack of knowledge. LV= found that 44% of UK adults don’t know how to check if an insurer or broker is regulated. You can visit the Financial Conduct Authority’s register at register.fca.org.uk to check that your insurer or broker is genuine.

3 Report your concerns

LV= is investigating 20 organised fraud inquiries linked to ghost broking and policy fraud, equating to £2 million in value. If you think that you have been a victim of a ghost broker, report your concerns to Action Fraud at actionfraud.police. uk or phone 0300 123 2040. For more info, visit lv.com.