YOUNG DRIVERS NEED SCAM AWARENESS BEFORE THEY HIT THE ROAD, ALLIANZ WARNS
As new research reveals one in ten (12%) 17–25-year-olds have already fallen victim to ghost broking, Allianz UK steps up to help parents educate the next generation of drivers on how to protect themselves.
Ghost broking sees fraudsters pose as legitimate insurance providers, often on social media, to sell policies that are fake, invalid or bought using false information. Comparing Q1 2025 with Q1 2026, Allianz UK has seen a 25% increase in young drivers aged 18-24 involved in fraud and driving uninsured. Furthermore, the insurer combats around 13,000 mispresented and purposefully altered polices a year, including those purchased through a ghost broker, with no signs of the issue slowing down. The number of fake and misrepresented policies or where ID has been stolen and used without knowledge and been identified by the insurer has risen by 33% between 2022 – 2025.
In response, Allianz UK has launched a campaign to help parents keep their children financially safe, as research reveals nearly two-thirds (60%) worry about their child falling victim to car insurance scams, while 82% believe young drivers don’t have access to enough resources to help them navigate these risks.
Meanwhile, four in five parents (84%) admit they’d never even heard of ghost broking, and nearly three-quarters (72%) would welcome more guidance on how to talk about this topic with their kids, feeling unequipped to educate their children on the risks (22%). Almost nine in ten (88%) want social media platforms to do more to remove scams and protect users.
To help combat the issue, Allianz UK has launched an online quiz, developed in partnership with Francis Naokes, a driving school instructor and influencer, designed to help learner and young drivers recognise the warning signs before they buy insurance cover. The insurer is also urging parents to share the tool with teenagers learning to drive and recommending the DVSA include guidance on how to buy insurance in the theory test.
Among young drivers, the risk is already visible. Nearly one in five say someone they know, such as a friend or family member, has been affected. Almost two-thirds (63%) have seen cheap insurance adverts on social media, with nearly half (47%) saying they are seeing more of them.
In addition, awareness of the risks of driving with fake or invalid insurance amongst young drivers is low. Just two fifths (39%) are aware that driving with fake or invalid insurance could lead to their vehicle being seized, or that they could be personally liable for accident or injury costs (51%). A third (32%) admitted to being unaware that if caught within the first two years of passing their test, they could face a driving ban that requires them to reapply for their licence and retake both tests.
Inspired by the DVSA hazard perception test, Allianz UK’s quiz asks users to spot warning signs across social media adverts, emails and WhatsApp messages before receiving a score and practical advice on how to stay safe.
Ben Fletcher, Director of Fraud and Financial Crime at Allianz UK, said: “Ghost broking is one of the fastest-growing forms of insurance fraud in the UK, and young drivers are being targeted through social media. Our research shows there is still significant confusion around how these scams operate and how to identify them. Insurance fraud pushes up the cost of policies for honest customers, so we continue take action and demonstrate the value of insurers and the work we do to protect our customers.
“We know education is just as important as tackling the problem, so we hope our call to strengthen the driving test with insurance education will help target young drivers before they hit the road. The consequences can be costly, from losing money paid to a ghost broker, having your car seized and left with the cost of a claim, so we want to help consumers understand the risks. As the saying goes – if it’s too good to be true, it probably is.”
Francis Naokes of Driving School TV added: “Learner drivers are tested on everything from stopping distances to road signs before getting behind the wheel. But nowhere are they taught how to spot a fake insurance policy or avoid ghost brokers, which have affected some of my students.
“The test we’ve created helps fill that gap by giving new drivers the skills to identify financial hazards before they become victims.”
Key ghost broker warning signs include:
1. Prices significantly below market rate
2. Pressure to pay by bank transfer rather than card
3. Requests for upfront cash payment
4. Policies sold through unofficial channels such as WhatsApp or Instagram DM
5. Documents that contain spelling errors, incorrect insurer details, or cannot be verified on the Motor Insurance Database
6. Brokers with no FCA registration number
The five-minute free quiz is available now at https://ghost-broker-quiz.lovable.app/
