Top 10 checks before buying new van insurance: the no-nonsense guide to dodging ghost brokers
Van insurance is one of those bills that never arrives at a convenient time. If you’re a sole trader, a new business, or simply a younger driver trying to get a van on the road, the price can feel brutal. And where there’s pain, there’s prey: ghost brokers have been busy, and in 2026 the FCA warned that bogus motor insurance sold through social media and messaging apps remains a live problem. The regulator says these scams can leave drivers unknowingly uninsured, exposed to fines, prosecution and vehicle seizure. (fca.org.uk)
The trick is to slow down, ask awkward questions and treat any “too good to be true” deal exactly as that. Here are the 10 checks worth making before you hand over a penny.
1. Treat bargain-basement quotes with suspicion
If one quote is miles cheaper than the rest, don’t celebrate just yet. Legitimate insurers price similar risks in broadly similar territory. A wildly undercut offer can be a sign that something has been twisted, omitted or invented to force the premium down. Ghost brokers often rely on the thrill of the bargain to stop you digging deeper. (fca.org.uk)
2. Check the broker is authorised
Before you pay anyone, check that the firm or individual is authorised on the FCA’s official register or through its Firm Checker. The FCA says almost all firms providing financial services in the UK must be authorised or registered, and consumers should use the register before buying insurance or other financial products. If the name isn’t there, walk away. (fca.org.uk)
3. Be wary of insurance sold in DMs
Facebook Marketplace, Instagram, TikTok and WhatsApp are favourite hunting grounds for ghost brokers. The FCA specifically warns that fraudsters often use social media and messaging platforms to sell bogus policies, especially to younger drivers. If your “broker” is sliding into your DMs with an insurance deal, that is not convenience; it is a warning light. (fca.org.uk)
4. Never send money to a personal account
Professional brokers should take payment through a proper business setup, not by asking you to transfer funds into someone’s personal bank account. A request for a personal payment is one of the simplest and strongest red flags. It does not prove fraud on its own, but it should instantly sharpen your senses. (fca.org.uk)
5. Ring the insurer yourself
Once you’ve supposedly bought the policy, contact the insurer directly using the number published on its official channels, not the one provided by the broker. Ghost brokers can and do pass on convincing-looking paperwork, but the only safe confirmation is direct verification with the insurer itself. (fca.org.uk)
6. Check the van on the Motor Insurance Database
For motor insurance, the FCA recommends checking the Motor Insurance Database to confirm the vehicle is listed. If your van does not appear when it should, assume there is a problem and investigate immediately. It is one of the quickest ways to catch fake, cancelled or otherwise dodgy cover before the wheels fall off the whole affair. (fca.org.uk)
7. Read every line of the paperwork
Some ghost brokers don’t fake the whole policy; they get genuine cover in place using false details, then manipulate the documents. That means you must check the lot: your name, address, occupation, vehicle registration, annual mileage and business use. Any mismatch can invalidate the policy, even if you believed you had bought the real thing. (fca.org.uk)
8. Keep a full paper trail
Save quotes, emails, payment receipts, messages, policy documents and any screenshots. If the deal turns sour, a proper paper trail can help show what you were told, what you paid and what you were led to believe. It may not fix the problem, but it can make the difference between a messy complaint and a complete dead end. (fca.org.uk)
9. Make sure the policy hasn’t quietly disappeared
One of the more cynical ghost-broking tricks is to arrange a genuine policy, then cancel it shortly afterwards and pocket the refund while the driver carries on assuming everything is fine. If renewal reminders stop arriving, confirmations vanish, or the paperwork goes strangely quiet, contact the insurer directly and confirm the cover is still active. (fca.org.uk)
10. Trust your instincts
Scammers love urgency. “Today only.” “Last chance.” “Pay now before the price changes.” If someone is pushing you hard, refusing straightforward questions or trying to stop you checking with the insurer yourself, step back. Buying van insurance should feel boring, not breathless. Ten cautious minutes now is a far better investment than discovering you’ve been driving uninsured. (fca.org.uk)
What happens if you get caught?
Even if you were genuinely scammed, the law may still treat you as driving without insurance. The FCA warns that the consequences can include a fixed penalty of up to £300, six penalty points, vehicle seizure, recovery charges, court action and even a driving ban. For anyone who depends on a van for work, the damage can quickly spread beyond the roadside and into lost income, cancelled jobs and a very expensive headache. (fca.org.uk)
Think you’ve been caught out?
Do not sit on it. Contact the insurer immediately, report the suspected fraud, and seek legal advice if you’ve already been stopped by police or notified of prosecution. The FCA says victims should report scams promptly, and ghost broking cases should be flagged through the proper fraud channels so the issue can be traced and others protected. The sooner you establish what actually happened, the better your chances of limiting the fallout. (fca.org.uk)
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