This multi-million car insurance fraud is operated by scammers who focus their efforts in victimizing motorists who are in search for a cheaper car insurance deal. And since car insurance premiums have continued to rise during the past years, there are a lot of motorists who find the notion of a cheaper car insurance premium appealing. According to the poll, the common motorists that these fraudsters target are pensioners, young motorists and immigrants who are living in theUKyet originate from other countries.
Drivers who succumb to this tempting offer do not realize that while they have attained a cheaper car insurance deal, they are open to prosecution because their insurance policy is worth nothing.
These ghost brokers are known to commonly trade over the internet and through newsagents. The individuals who advertise these fraudulent deals are most likely acting as middlemen. Once they have gotten hold of a customer, they will get hold of actual car insurance companies to arrange insurance coverage.
While these insurance fraudsters contact real and legitimate fraudsters, they usually get a policy which is lesser than the required insurance coverage by law. Also, most fraudsters ask for cash payments to pay off the premiums and then pay off the premiums using stolen or illegitimate credit cards.
In other noted cases, some ‘ghost brokers’ apply for genuine car insurance policies yet alter some of the personal details on the application to bring down the cost of insurance. This would leave the policy holder with nothing but an invalid insurance policy.
The scale of fraudulent car insurance deals has grown to an extent that the government has assigned a ‘fraud team’ to clean up the insurance industry. Also, the City ofLondonpolicemen have joined forces with the fraud team to combat car insurance fraud. The newly-forced insurance fraud team is better known as the IFED or Insurance Fraud Enforcement Department. They are being funded by the insurance industry and being supervised by the City of Londonforce.
In accordance with these recently gathered facts, a car insurance expert from the Association of British Insurers has spoken about this issue. Based on what he said, “Drivers must not fall for cheap car insurance deals being offered by individuals that you meet in the supermarket. If the deal someone is offering you seems too good to be true, then it most likely is. For any doubts, you can always check with the Financial Services Authority to see if the individual you are dealing with is legitimate.”
No related posts.
Comments are closed.