Author: Sam Smith

In today’s world, finding a bargain online is second nature. Whether in clothes, holidays, or tech, most of us are always on the lookout for the lowest price. But when it cIn today’s digital world, hunting for online bargains has become second nature. Whether it’s for fashion, holidays, or the latest tech, we’re constantly looking for the lowest price. However, when it comes to car insurance, chasing a deal that seems too good to be true can lead to serious trouble.

One of the fastest-growing threats to drivers is ghost broking—an insurance scam that has left thousands of people without cover, out of pocket, and facing legal consequences.

What Exactly Is Ghost Broking?

Ghost broking is a sophisticated type of insurance fraud. Fraudsters pretend to be legitimate brokers and sell what appear to be cheap car insurance policies. These scammers often operate through social media, messaging apps like WhatsApp, or even in person.

The policies they sell typically fall into one of three categories:

• Completely fake, with no real insurer backing them.
• Invalid, created using false information to reduce the price.
• Genuine but tampered with, where a real policy has been illegally altered and resold.

Unfortunately, many victims don’t discover the deception until it’s too late—such as during a traffic stop or when they need to make a claim.

Why Are People Falling for It?

Ghost brokers are skilled at spotting and targeting vulnerable individuals. They frequently go after:

• Young drivers facing high insurance premiums.
• Non-native English speakers who may struggle with complex insurance jargon.
• People urgently searching for cheap deals online.

Additionally, these scammers often advertise on platforms like Facebook and Instagram, using professional-looking branding and offering prices that are far lower than anything else on the market.

The Real Cost of Ghost Broking

Falling for a ghost broking scam can lead to far more than just financial loss. The consequences are serious:

• No insurance coverage in the event of an accident, meaning you’re fully liable.
• Legal penalties including fines, penalty points, or even losing your license.
• Vehicle seizure—the police can remove your car from the road immediately.
• Loss of money, since ghost brokers usually vanish once paid.

How to Spot a Ghost Broker

Knowing what to look for can protect you from becoming a victim. Be cautious if you encounter:

• Prices that seem drastically lower than the norm.
• A seller who only wants to communicate via WhatsApp or other messaging apps.
• Requests for payment by bank transfer or cash, instead of secure methods.
• Policies that don’t come from a recognised insurer.
• Brokers unwilling to share their Financial Conduct Authority (FCA) registration details.

Tips to Stay Safe

Thankfully, you can avoid ghost broking with a few smart precautions:

• Choose a trusted broker—always check they’re registered with the FCA.
• Contact the insurer directly if anything feels unclear or suspicious.
• Be wary of rock-bottom prices—they’re often a red flag.
• Pay through secure, traceable methods, not cash or personal bank transfers.

Final Thoughts

Ghost broking is a growing threat, but staying informed is your best defence. By choosing a reliable, FCA-regulated broker, you ensure your insurance is both genuine and legally valid.

At Paul Smith Associates, we’re committed to offering clear, honest, and professional advice. If you’d like a free insurance review or want to check the authenticity of your current policy, don’t hesitate to reach out.

Let us help you stay covered—and stay safe.

Thank you for reading,   

Lilly Morgan – T Link Work Placement Student  

The Insurance Glossary You’ll Actually Understand. 

Let’s face it – Insurance isn’t exactly the most intuitive topic. Whether it’s your home policy, car insurance or business cover, the fine print can be filled with some confusing terminology. That’s where we come in. 

As insurance brokers, we believe in making things simple and clear to keep you stress free and make the insurance procedure a lot more straightforward. So here’s a quick alphabetical guide to help you understand some of the terms in insurance.  

A 

• Accidental damage – Unexpected damage caused suddenly (not wear or tear). 

• Act of God – A natural event outside human control (e.g. flood or storm). Often not covered unless stated. 

• Annual premium – The total cost of your insurance if paid once a year. 

• Additional premium – An extra charge due to changes in your cover, risk level or circumstances. 

B 

• Buildings insurance – Covers the structure of your property (walls, roof, etc). 

• Broker – A regulated adviser who compares insurers on your behalf and helps you find the best policy. 

C 

• Cancellation fee – A charge for ending your policy early. 

• Claim – A formal request for your insurer to pay for a loss or damage. 

• Claim excess – The amount you pay towards a claim. You can choose a higher voluntary excess to lower your premium. 

• Contents insurance – Covers personal possessions inside your home (e.g. tech, clothing, etc). 

• Comprehensive cover (fully comp) – Motor insurance that covers damage to your own vehicle and others, regardless of who’s at fault. 

D 

• Defaqto rating – An independent star rating (out of 5) used to show the quality of financial products. 

• Duty of disclosure – Your legal responsibility to give full and honest details when applying for insurance. 

E 

• Endorsement – A change or addition to the original policy (e.g. adding a new driver). 

• Excess – The fixed amount you must pay when making a claim. Comes in two types: 

• Compulsory excess – set by the insurer. 

• Voluntary excess – chosen by you to adjust premium. 

• Exclusion – Something your policy specifically does not cover. 

F 

• Financial Ombudsman Service (FOS) – An independent body that handles complaints between consumers and financial firms. 

• Flood Re – A UK government-backed scheme that helps people in high-risk flood areas get affordable home insurance. 

G 

• Gap insurance – Covers the difference between what your car insurer pays if your vehicle is written off, and what you originally paid (or still owe on finance). 

• General insurance – A broad term for non-life insurance policies like home car, travel, etc (basically anything that isn’t life insurance). 

• Geographical limits – The area or regions where your insurance is valid. Some travel policies only cover Europe, not worldwide. 

• Goods in transit insurance – Covers items being transported from one location to another – often used by delivery drivers, couriers, or tradespeople. 

• Grace periods – A short time after a payment due date where your policy may still remain valid before it’s cancelled for non-payment. Mot all policies offer this. 

• Gross premium – The total price you pay for insurance, including Insurance Premium Tax (IPT) and any admin fees. 

H 

• Hazard – A condition or situation that increases the change of a loss or damage (e.g. faulty wiring is a hazard for fire). 

• High-risk items – Valuable items (like jewellery, watches or electronics) that need to be specifically declared on your contents due to their high value. 

• Home emergency cover – Optional add-on to home insurance that covers urgent issues like boiler breakdowns, burst pipes, or pest infestations – 24/7 call-out included. 

• Household insurance – A general term that combines buildings insurance and contents insurance. 

• Hazardous activity (travel insurance) – Certain activities (e.g. skiing, scuba diving, skydiving) that are considered higher risk and may require extra cover in your travel insurance. 

• Hire and reward – Insurance cover required if you use your vehicle to carry passengers or goods for payment – used by couriers, taxis and delivery drivers. 

I 

• Indemnity – A principle of insurance that returns you to your pre-loss financial position – no better, no worse. 

• Insurance Premium Tax (IPT) – A government tax included in the price of your insurance policy. 

• Insurer – The company that underwrites ad provides your insurance cover. 

L 

• Legal expenses cover – An optional add-on that covers legal costs (e.g. property disputes, employment issues, etc). 

• Loss adjuster – Am independent professional sent by the insurer to assess the value and legitimacy of the claim. 

• Loss assessor – Works for you, not the insurer, to help prepare and negotiate a claim. 

M 

• Market value – The price something would sell for on the open market – used in claims, especially for cars. 

• Material fact – Any important information that might affect the insurer’s decision. This must be declared.  

N 

• Named driver – Someone specifically listed on your car insurance policy who’s allowed to drive the vehicle. 

• No Claims Discount (NCD) – A reward for not making a claim – builds up each year and can significantly reduce premiums. 

P 

• Policyholder – The person or business named as the owner of the insurance policy. 

• Policy schedule – A document outlining what’s covered, policy limits, and key personal details. 

• Premium – The amount you pay for your insurance (monthly or annually). 

• Public liability insurance – Covers you or your business if someone is injured or their property is damaged because of your actions. 

R 

• Renewal – When your policy comes to an end and you’re offered new terms to continue for another year. 

• Risk – The likelihood of a claim being made – used by insurers to calculate premiums. 

S 

• Schedule of insurance – A key document detailing cover types, amounts insured, start and end dates. 

• Sum insured – The maximum amount your insurer will pay for a claim. 

T 

• Third Party Only (TPO) – The minimum legal car insurance in the UK – covers damage to others but not your own vehicle. 

• Third Party, Fire & Theft (TPFT) – Covers other people’s vehicles and property, plus your car if it’s often or damaged by fire. 

• Total loss (write-off) – When the cost to repair your car is more than its value. 

U 

• Underinsurance – When the amount you’ve insured for is too low – this could reduce your payout in claim. 

• Underwriter –The person or department that assesses the risk and decides your policy terms and price. 

V 

• Valuation – An expert assessment of how much an item is worth for insurance purposes (e.g. jewellery, art, or property). 

• Void policy – A policy that is declared invalid – often because of non-disclosure or false information. 

• Voluntary excess – The portion of a claim you choose to pay yourself, in addition to the compulsory excess. 

• Vehicle category – Cars are grouped into insurance categories (1-50) based on their cost, performance and repair costs. 

W 

• Warranty (in insurance) – A condition you must follow under your policy – if you break it, cover might be invalid. 

• Wear and tear – Gradual damage from regular use. Usually excluded from cover. 

X 

Y 

• Year of manufacture – The year your car or item was build or produced – used to determine its current value or depreciation in a claim. 

• Yield (in property insurance) – In commercial property insurance, “yield” can refer to rental income generated by the property, which may be relevant in loss of rent cover. 

Z 

• Zero depreciation over – A policy feature where the insurer pays the full replacement cost of a new vehicle part with no deduction for depreciation. Rare in the UK but can appear in prestige or niche cover.  

Understanding insurance jargon doesn’t have to be confusing. Whether you’re a first-time policyholder or reviewing your cover, knowing what terms like excess, underwriter, or endorsement actually mean can help you make smarter, more confident choices. 

If any of these terms still leave you scratching your head – or if you’d like help reviewing your current insurance – we’re here to help! As your local insurance broker, we’ll break it down in plain English and ensure that you get he right cover for your needs. Just give us a call! 

Thank you for reading,  

Lilly Morgan – T Link Work Placement Student 

Why Being A Local Insurance Broker Matters?

When it comes to choosing insurance, customers often face a sea of online options and national call centres. But sometimes, what you really need is someone who knows your area, your needs, and your community. That’s where a local insurance broker, like us, truly makes a different – and here in Somerset, that local touch counts now more than ever. 

Here at Paul Smith Associates, we are based in the heart of Bridgwater. We believe that local knowledge and personal service make all the difference – especially when it comes to protecting your home, business or livelihood.  

Serving clients across Somerset, we understand the needs of our community in a way national providers simply can’t. Whether you’re running a small business in Taunton, a takeaway in Yeovil, or a farm near Frome, local risks, regulations, and expectations vary – and we take the time to get it right. 

From our base in Bridgwater, we work closely with individuals and businesses throughout the local area. Whether it’s providing insurance cover for local tradespeople, helping small businesses along Eastover and St Mary Street, or advising families on home and contents insurance in surrounding villages like Cannington, Wembdon, and North Petherton, our focus is on the people and businesses that make up our local community. Being based here means we understand the unique challenges and opportunities faced by those living and working in Bridgwater and nearby parts of Sedgemoor. 

Need to meet face-to-face? You’re not dialling a call centre – you’re speaking to someone just a drive away! We know the flood risks in Westonzoyland and the bust high street pace of Ilminster and Wincanton. That means faster, more accurate advice and policies that truly fit. 

Insurance isn’t just about ticking boxes – it’s about trust, support, and knowledge. And when your broker knows Somerset like you do, that peace of mind is easy to find.  

So whether you’re based right here in Bridgwater with us or anywhere across the county, Paul Smith Associates is your local, trusted insurance partner. Thats Why Being A Local Insurance Broker Matters!

Thank you for reading. 

Lilly Morgan – T Link Work Placement Student. 

Finding the right insurance can be time-consuming, confusing and – if done wrong- costly. At Paul Smith Associates, we’re here to make the process simple, transparent and tailored to you. As an independent, family-run insurance broker since 1993, our job is to work on your behalf – not the insurers’. We help you secure the best cover, at the best price, from a wide network of trusted providers.

Independent advice you can trust.

As brokers, we’re not tied to any single insurer. This means we can compare a wide range of policies to find the one that suits your individual or business needs. Whether you’re looking for home, motor, or commercial cover, among many other things, we provide honest, impartial advice – always with your best interest at heart.

More than just a quote.

Anyone can get a quote online. But do you know what’s actually covered? Are you overpaying? Is there a better option out there? Stop your overthinking and know for certain! At Paul Smith Associates, we go beyond comparison sites by breaking down the small print, assessing your risk properly, and ensuring you’re neither underinsured nor paying for extras you don’t need.

Personal service, every step of the way.

We pride ourselves on providing friendly, approachable, one-to-one service. Our clients know they can pick up the phone and speak to a real person who knows their name and understand their situation. From policy setup to renewal and claims support, we’re here for the long run – not just a quick sale.

Expert coverage for individuals and businesses.

Whether you’re insuring your first car or protecting your growing business, we offer a full range of personal and commercial insurance solutions including:

• Commerical Motor Products
• Commerical Property
• Liabilities
• Business buildings such as restaurants, offices and shops
• Personal insurance for vehicles
• Your personal home
• & much more!

We handle the paperwork – and the stress.

If you need to make a claim, we’ll be right by your side. Our experienced team will deal with the insurer, help gather any required documents, and work to make the process as quick and smooth as possible – so you can get back to your normal life or business faster than hunting for a reliable quote online.

At Paul Smith Associates, we believe in doing things the right way – with honesty, care, and professionalism. Whether you’re reviewing your current cover or starting from scratch, we’re here to help you make confident, informed insurance decisions.

What are you waiting for? Call to take action!

Looking for insurance done properly? Contact Paul Smith Associates today for personalised advice, competitive quotes, and cover that works for you! All information and contact details on our website at https://paul-smith-associates.co.uk/

Thank you for reading

Lilly Morgan – T Link Work Placement Student