Birmingham Ghost Car Insurance Scam Foiled - Best Money Saver

8th March 2016by Neil Martin0
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A major car insurance scam in the Midlands has been broken up by police.

Four men from Birmingham were at the core of a car insurance scam. One of the group acted as a broker for other people trying to get car insurance. He was able to secure cheap deals for his ‘clients’ not because of any professional arrangements, but because he lied on application forms, then charged a ‘brokerage’ fee of up to £500. And because of the lies and falsehoods, the car insurance policies taken out by his clients were invalid and the people were not covered.

The method behind the scam was simple. He simply changed his clients’ details in order to get cheaper quotes and arrangements. This would usually involve a change of address, birth dates and details behind previous claims.

The fraud was detected by police when the insurance company picked up on the fact that multiple claims were being made from one single internet address. What’s more, when police checked an address for a number of the policies, they were made using a cottage in the south of the country whose owners had no idea their address was being used in such a way.

Police raided the homes of the perpetrators of the scam and discovered details of the fraud on mobile phones and computers.

The head of the gang was given a jail sentence, but it was suspended and the other members were ordered to pay costs as well complete set hours of unpaid work.

Representatives of the car insurance lamented the way in which innocent people had been hood-winked by the gang, but pointed out it was the responsibility of the person buying a policy to check that it is valid and that the details are correct. Car insurance companies would not cover claims for polices that might have been taken out in good faith, but were bogus.


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