New drivers are being warned to watch out for hoax car insurance "deals" being promoted on social media.
Thousands of learners are preparing to get their driving licences after the Coronavirus pandemic caused disruption to tests for more than a year.
And the Insurance Fraud Bureau (IFB) has issued a warning to first-time motorists to be cautious of a scam called "ghost broking", where fraudsters pretend to be insurance brokers to sell unrealistically cheap and fake policies.
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The IFB warned these scammers often target younger drivers - and that people could be paying hundreds of pounds for what in reality is no more than a photoshopped piece of paper. In some cases, fraudsters use stolen personal information to take out policies which are then doctored before being sold on.
When victims try to claim, they realise their policy is invalid and they have no cover.
If a collision is caused by the uninsured driver they may be liable for covering the costs, which can run into thousands of pounds.
Uninsured drivers can also have their vehicle instantly seized and are likely to receive six points on their licence. They may also face court, where they might receive an unlimited fine and a driving ban.
The IFB warned an uninsured driving conviction will show on records and can affect job prospects.
Learner drivers in a driving school are typically covered by their instructor's insurance policy, until they pass their test and need to take out motor insurance for their first car.
Stephen Dalton, head of intelligence and investigations at the IFB said: "The last thing new drivers need right now is to risk losing their car for no insurance because they've been duped by a scammer on social media.
"Drivers must carry out basic checks to make sure they're buying car insurance through a trusted provider, or they'll be making a very expensive mistake.
"I encourage anyone who's seen evidence of an insurance scam to report it to the IFB's confidential Cheatline online or on 0800 422 0421."
Mark Magee, head of driver policy at the Driver and Vehicle Standards Agency (DVSA) said: "As well as ensuring you have the skills, knowledge and understanding attitude to drive safely, having valid insurance is of the utmost importance when you drive on your own.
"Check to make sure insurance brokers are genuine before parting with your money."
IFB's top tips to avoid scam car insurance deals:
- Avoid deals on social media or messaging apps and only purchase car insurance through reputable sellers.
- If buying through an insurance broker, check the seller is registered with the British Insurance Brokers' Association (Biba).
- If buying directly through an insurer they should appear as a registered member of the Motor Insurers' Bureau (MIB).
- Checks can also be made to see if insurance advisers are registered with the Financial Conduct Authority (FCA).
The IFB's Cheatline can be contacted online or by phone on 0800 422 0421.
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