Toronto, Ontario — According to a recent study from Aviva, nearly one in three drivers aged 17 to 25 have purchased invalid or fake insurance via social media.
Specifically, Aviva’s study surveyed 2,000 young drivers and found that 30 percent had car insurance from someone operating illegally on social media platforms.
The research was conducted to highlight the issue of ghost broking, where fraudsters pose as legitimate insurance companies, illegally selling fake or invalid insurance to those who find it difficult to buy insurance.
The study continues that “of those young drivers who purchased car insurance via social media, 89 percent had serious problems with their policy.”
Problems identified included:
- 49 percent said their details (e.g., age and address) were misrepresented on the policy, meaning it was not valid
- 22 percent said they made a claim which was declined because they weren’t properly insured
- 21 percent said the seller didn’t help them when they raised concerns
- 17 percent said the police stopped them and impounded their vehicle or issued a fine for driving without adequate insurance
And, while a range of answers were provided, 19 percent of young drivers also reported that they couldn’t “see any reason not to buy insurance on social media.” Similarly, 48 percent of respondents also indicated that brokers approaching young drivers with offers of cheap insurance are trustworthy.
Katriona Cunningham, policy application fraud lead at Aviva commented that “young drivers aged 17 to 25 are the first generation to grow up with social media being an integral part of their daily lives. It is understandable, then, that when looking for car insurance, 30 percent of young drivers said they turn to social media.”
“However, ghost brokers are actively targeting young drivers on social media platforms, offering cheap but worthless car insurance that puts the young driver at risk of being uninsured. I would say to all young drivers: if a deal looks too good to be true, it probably is. If you engage with someone offering cheap insurance on a social media site, they are probably fraudsters. Avoid anyone offering access to cheap insurance via social media.”
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