At Bollington Motortrade, we deal with fraud every day, and have sophisticated detection methods. We undertake validation checks on applicants and have access to shared information on known insurance fraud. Thus, we have built up good relationships with insurance companies who recognise that we do all that we can to eliminate fraud.
Of course, there are some instances where fraud is committed unwittingly, particularly when it comes to taking out a motor trade insurance policy. Perhaps you have underinsured your business because you didn’t fully understand the policy you needed, for example. Our team at Bollington Motortrade are here to help.
What is Ghost Broking?
A common type of fraud is ghost broking. Ghost brokers are conmen who will often use seemingly legitimate sites or small adverts, offering deals that may seem too good to be true, to lure in their victims. The problem is that often people don’t know what to look for and will simply pick the cheapest motor trade insurance policy cover they can find, not necessarily knowing that they are becoming a victim of fraud.
You must consider your insurance in the same way you would your bank. You wouldn’t setup a bank account with a supposed bank you found through an ad on Facebook or Gumtree, would you? Operating your motor trade business with incorrect or non-existent cover can cost you substantial money, not to mention potentially causing you legal issues.
Many ghost brokers target young drivers or simply those on a tight budget. In some cases they will draw up fictitious ‘policies’ and present them to applicants. We cannot stress enough the dangers to yourself and your business of getting involved in fraudulent insurance activity.
How to Avoid Ghost Broking
Recent research suggests that over 100,000 people could be out on the roads with completely invalid motor and motor trade insurance because they have been involved with ghost broking. They often use local newspapers, sites like Gumtree or personally hand out fliers or business cards to shoppers in malls and supermarkets.
Here are a few tips on how to avoid ghost brokers:
- Ghost brokers will often simply leave a mobile number, a location and a first name. Nobody who does this is a legitimate insurance broker.
- Many ads will promise something to the effect of “all vehicles and motor trades insured – up to 75% off insurance costs.” If it seems way too good to be true, it probably is!
- If, once you ring up such a number, the ‘broker’ immediately offers you an insurance quote (some will do this through text), then you know something’s not right. How can someone offer insurance for all vehicles? What about vehicle types, postal address, yearly mileage and claims history? These all have an effect on motor trade insurance. What about the type of business itself?
- Essentially, you need to know whether the broker is registered with the Financial Conduct Authority.
If you feel you have come into contact with a ghost broker then contact the police.
The easiest way of avoiding ghost broking is to use a reputable, FCA-authorised broker. Trust Bollington to offer the best motor trade products, from a wide range of well known insurers, at the best possible prices.