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Avoiding Ghost Brokers: The Red Flags

These days, there are many threats and dangers to be aware of online. It can be hard to keep up, but one very serious threat that has emerged in recent times has been ghost brokers. This is an internet scam that is becoming a serious issue and will only become more common with the rising cost of living and the growth of online platforms and social media. This article will explain what ghost brokers are and the best way of avoiding them.

What is a Ghost Broker?

So, what exactly is a ghost broker? Essentially, this is a cybercriminal posing as an insurance broker to sell insurance that does not exist or is invalid. They will claim that they are a middleman for a reputable insurance provider that can get you a great deal, which is usually done by falsifying information, forging documents, or taking out a policy only to cancel it soon after.

Ghost brokers will usually target young and inexperienced drivers with deals that seem too good to be true (hint: they are), and motorists often do not know that they have been conned until their insurance is checked or they get into an accident.

Why is Valid Insurance So Important?

Obviously, there are the financial implications of getting conned into purchasing invalid car insurance, but there are also very serious legal consequences. Even though you are unaware, driving a car without valid insurance is a criminal offense that can result in a fixed penalty of £300 and up to 8 points on your license. If your case ends up in court, you could be disqualified from driving altogether, and your vehicle could be seized. 

Many motorists will be looking to make savings on their car insurance with the rising cost of living, so what are a few red flags to look out for?


If the deal seems too good to be true, then it probably is. Do some research and comparisons online, and if you cannot find anything that gets close to the deal, then stay away at all costs.

Methods of Advertising

Ghost brokers operate on social media and selling platforms like eBay, so these are platforms that you should avoid when looking for car insurance deals. If you find a suspicious broker, do some digging to see if they have a legitimate website or only operate on social media.


You should also be wary of “brokers” that only communicate by text, email, or direct message. They will want to do all they can to remain anonymous and avoid being traced. Additionally, be wary of the language used in any messages and look for typos and grammatical mistakes.

Hopefully, this post will be educational and help you with avoiding ghost brokers when searching for new car insurance deals. 

Featured Image by Shakti Shekhawat from Pixabay