At just 18, Wayne Simpson became a victim of a sophisticated insurance scam.

Having struggled to find reasonably priced insurance for his Volkswagen Polo, Simpson found what looked like a great deal on Instagram promoting low-cost car insurance. Now 20 years old, he purchased six months of coverage for £562, a rate significantly lower than any other quotes he had received.

It was only after a minor accident that he learned the truth. Upon contacting Aviva, whom he believed to be his insurer, he discovered he had fallen prey to a ghost broker—someone selling fake or non-existent insurance policies online.

“Aviva informed me that there was no record of my policy, and I was driving without insurance. I felt devastated,” he recounted.

Simpson expressed the immense pressure young people face regarding driving costs, particularly insurance. “The price of driving is a significant issue for my age group. Some friends have even chosen not to drive because of it,” he added.

“When I saw that deal, it seemed legitimate and the price was enticing, so I jumped on it. The documents looked quite convincing.”

Rising Costs for Young Drivers

According to consumer site Go.Compare, the total expense of getting a driver aged between 17 and 25 on the road—including first car acquisition—rose by 19% from £5,947 in 2023 to £7,100 last year.

Car insurance rates have dramatically increased. A new 17-year-old driver now pays an average of £2,727 annually, which is over double what they would have paid in 2021—£1,221—and significantly higher than the current average of £861 across all age groups, according to Confused.com.

Declining Young Drivers

The number of young drivers has sharply decreased since the pandemic, struggling to return to pre-pandemic levels. In March 2020, 3.32 million individuals aged 17 to 25 had a full driving license, dropping to 2.97 million by April 2021, and recovering only to 3.1 million by September last year—a decline of 6% from before the crisis.

For those who are driving, many are trying to avoid soaring insurance costs. In 2023, a record 6,316 drivers aged 17 to 20 were convicted of driving without insurance, an increase of 117% since 2021.

“Insurance premiums have skyrocketed for younger drivers,” stated Rhydian Jones from Confused.com. “This trend is due to rising claim payouts insurers are facing and their escalating costs. Since younger individuals generally have less driving experience, they are categorized as higher risk, leading to increased premiums. This significant rise in costs may compel young drivers to explore alternative options to manage expenses.”

Young Drivers Targeted by Fraud

Aviva highlighted a concerning statistic: 30% of young drivers have purchased insurance from fraudsters misrepresenting themselves as legitimate intermediaries via social media.

“The findings are alarming,” said Pete Ward, head of fraud at Aviva. “We have been encountering more of these incidents recently, which is quite concerning.”

The Insurance Fraud Bureau, backed by insurers and cooperating with law enforcement to combat fraud, explained that ghost brokers often operate through social media and word of mouth.

Some individuals obtain policies from genuine insurance firms using false details, such as fake age or employment status, while others submit completely fabricated policy documents, as experienced by Simpson.

Aviva reported that four-fifths of young drivers surveyed had come across social media advertisements for cheap, possibly fraudulent car insurance. When asked why they might consider purchasing from social media brokers, 15% noted they couldn’t afford other quotes.

A staggering 89% of those who secured insurance through social media faced significant repercussions, according to Aviva’s survey of 2,000 drivers aged 17 to 25. One in six reported being stopped by police for driving uninsured.

Aviva identified multiple victims of the ghost broker that deceived Simpson, who were also sent authentic policy pamphlets from Aviva and a forged certificate featuring the insurer’s branding alongside the broker’s name. None of the affected drivers possessed actual insurance, and their vehicles did not appear in the Motor Insurers’ Bureau database, which tracks insured vehicles.

Driving without insurance may result in a £300 fine and six penalty points. If the case is escalated to court, this could lead to a driving ban or an unlimited fine, and police are authorized to confiscate uninsured vehicles.

Without insurance, those involved in an accident may face costly liabilities that could exceed tens of thousands of pounds. If personal injuries result, individuals may also be required to compensate for damages.

Last year, Aviva canceled or terminated almost 17,000 policies due to application fraud and identified about 7,000 cases where ghost brokers sold counterfeit insurance.

Ward cautioned young drivers, “If an offer seems too good to be true, it likely is. Avoid engaging with any business exclusively operating on social media, especially those that only communicate through messaging apps.”

Dishonesty with Insurers

Some young drivers are tempted to lower their costs by depicting their parents as the primary drivers of their vehicles.

Insurance quotes depend on the primary driver’s risk assessment, influenced by age and claims history. Younger drivers face higher costs due to perceived risk, but adding an older individual as a co-driver can lessen the overall premium impact.

However, inaccurately listing a secondary driver who is actually the main driver is illegal—a practice known as fronting. Aviva’s survey revealed that one in six young drivers admitted to this practice.

In 2023, 583,000 insurance applications were flagged as fraudulent, marking a 17% increase from 2022, according to the Association of British Insurers.

Those caught fronting may encounter substantial fines, increased insurance rates, and significant expenses if their insurer denies a claim. They could also risk acquiring a criminal record.

“Many young drivers view fronting as a trick to secure cheaper insurance, but it is indeed a type of insurance fraud,” Ward warned. “This behavior brings serious consequences, and it seems many are unaware of that.”

While some may believe they can easily evade detection with fronting, insurers often examine who was operating the vehicle during a claim and may delve into further investigations if suspicions arise.

Financial Challenges in Learning to Drive

Driving lessons have also become more expensive. The Driver and Vehicle Standards Agency reports that learners typically require 45 hours of instruction and an additional 22 hours of practice before passing their driving test. According to the RAC, lessons average £45 per hour, which is £10 more than in 2021, bringing the total cost for 45 lessons to approximately £2,025.

Acquiring that first vehicle is also becoming increasingly burdensome. Drivers aged between 17 and 21 spent an average of £3,000 on their first car in 2024, up from £2,780 in 2023, based on Go.Compare data. The availability of used vehicles priced under £5,000 has dropped by 75% since 2015.

AA Finance found that 29% of individuals aged 18 to 34 are stretching their finances to lease cars instead of purchasing them outright.

Neglected Vehicle Safety

The rising costs of car repairs are leading some young drivers to delay essential maintenance, such as replacing tires or skipping MoT tests, according to the RAC.

Their research indicated that 36% of under-25s avoided routine upkeep and repairs in 2024 to save money, an increase from 26% in 2023. Furthermore, 50% of under-25s would struggle to cover a repair cost of £500 or more, contrasting with 25% of drivers over the age of 65.

Strategies for Lowering Insurance Costs

Interestingly, comprehensive insurance—the highest level of cover—often turns out to be the most affordable option. Confused.com states that the average cost of third-party insurance for drivers aged 17 to 25 is £3,788, while fully comprehensive coverage averages £2,279.

Younger drivers can consider telematic or “black box” insurance, which monitors driving behavior and can reduce premiums for safer driving patterns.

Additionally, temporary insurance on a parent’s vehicle can be a viable option for those who drive infrequently or require short-term coverage during the summer. This could cost around £41 per day, with longer policies resulting in a reduced daily rate.

Adjustments to job titles on insurance applications can also yield savings. For instance, a chef might pay £549 for coverage, while a cook could face only £384, highlighting the significance of being strategic with job descriptions.