FCA warns young drivers about fake insurance policies
The Financial Conduct Authority has warned thousands of young drivers may be paying for fake insurance, urging them to check their coverage.
The Full Story
A plain summary built from the channels that reported this story.
Thousands of young drivers could be paying for car insurance cover that does not exist, the Financial Conduct Authority has warned. The watchdog found that around half of young drivers bought policies on social media or messaging apps, but 39% are not confident they can spot a fake. New research passed to ITV News by insurers suggests 12% of young drivers have already been caught out by scammers, including so-called ghost brokers who sell policies that are not genuine.
One young driver told how he thought he had found a bargain on social media, with a quote around £1,000 cheaper than high street insurers. But after buying the policy, a police road check found he had no valid insurance. His car was seized and he was fined. He warned others: "Just be careful out there, there's a lot of people out there who are wanting to get young drivers, catch them out and ultimately make driving a lot more expensive for them than it should be."
Fraudsters often advertise through WhatsApp and offer unrealistic savings. One insurance scam expert said: "Things to look out for, the advertising via WhatsApp, talking about thousands of pound savings which is generally unrealistic, no claim bonus solutions, you can't just create a no claims bonus if you haven't got one." Social media platforms say their systems spot and stop scams, but reputable firms also advertise there.
Vehicles left uninsured because of fake policies can be crushed by police. Some campaigners now want the driving theory test to cover how to get a valid insurance policy. They point out that basics like road signs and stopping distances are included, but not the legal requirement to hold insurance.
A senior financial official warned that some drivers will not know they are victims until they make a claim. "The insurance is invalidated and they're not covered. They will be left really vulnerable needing to cover the costs of the crashed car or the lost car etc. That can have a real impact for the consumer." He advised drivers to check their policy documents and remember: "When the price looks good, it might be too good to be true. So please check it, check that price, check your policy."
Young drivers already face heavy expenses, and now they are an increasing target for fraudsters, which can cost them even more.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | ITV |
|---|---|
| 12% of young drivers have been caught out by insurance scammers. | |
| 39% of young drivers are not confident they can spot fake insurance. | |
| Around half of young drivers bought insurance policies on social media or messaging apps. |
Channel Perspectives
What each channel focused on, with key quotes.
ITV focused on the human impact, leading with a young driver who lost his car after buying a fake policy. It also highlighted the role of social media and expert tips for spotting scams, and included a call for insurance basics to be added to the driving theory test.
- “Just be careful out there, there's a lot of people out there who are wanting to get young drivers, catch them out and ultimately make driving a lot more expensive for them than it should be.”
- “Please do. When the price looks good, it might be too good to be true. So please check it, check that price, check your policy.”
- “Things to look out for, the advertising via WhatsApp, talking about thousands of pound savings which is generally unrealistic”
Broadcast Timeline
News broadcasts tracked for this story, in time order.