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Young Drivers – Beware of Rough Insurers

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Scam websites have been found to be offering car insurance covers tempting to young drivers which promise a cheap quote with a well-known insurance company on sites such as Gumtree.com. Little do they know, buyers of such schemes could end up picking up a criminal record as opposed to a cheap car insurance quote. The fraudsters mainly target young drivers who are more vulnerable and willing to sign up to anything which offers them a bargain on their car insurance. It is a fact that those with less experienced are made to suffer from high insurance premium by the industry. The typical customer for such expensive monthly premiums are usually college and university students who are itching to have a set of wheels at whatever cost it takes.

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Fraudsters who take advantage of the market rate for inexperienced drivers often pose as middlemen who can slash the premium cost and often operate from a residential address and are certainly unregulated. This ongoing and lucrative crime has been the central focus of the Insurance Fraud Enforcement Department which in a series of raids, arrested 27 suspects on relation to their dodgy broker dealings last October. Later that month, two of the suspects were convicted and jailed in what has been described as the biggest insurance scam that has taken place in Britain. The two convicted men have been discovered to have made £500,000 between them by scamming an estimate of 600 young drivers into purchasing fake policies which have no value or authenticity attached to them.

One of Britain’s leading car insurers, AA, stated that their fraud department on average tackles more than 10 rouge brokers from trying to obtain car insurance every day. Among some of the most common practices which rogue brokers use is where they create a fake policy for a customer which is based on a duplicate of a real insurance policy. This way of being scammed is the easiest to avoid since the customer can check whether their vehicle is insured by checking askMID.com which is the UK’s motor insurance database. Another common trick in the book for fraudsters is where they take out a real insurance policy on behalf of the customer but where they have the certificate sent over to their address. Here the broker poses as if he will be the middle man and hand over the certificate to the customer upon its receiving it. However, as many of the clients found out as soon as the money id paid to the broker he will shortly after cancel the policy and retain all of the clients’ money as well as receive a refund from the insurance company.

Therefore, a word of advice for all you eager to drive petrol heads – if it sounds too good to be true, then it probably is!


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