Insurance news - Fraudulent car insurance for newly qualified driver policies

Car insurance news - Fraudulent car insurance company under investigation

Policyholders with car insurance for newly qualified drivers are being alerted by Leicestershire County Council's Trading Standards that they could be on the road illegally.

This nationwide warning has come after 30 complaints from motorists who bought cover from a company called Aston Midshires Insurance and found that their insurance was invalid.

The firm is now under investigation by the police and the Financial Services Authority, as well as Trading Standards, after its website disappeared and its phones stopped being answered.

The company was listed as being based in a business park in Enderby, Leicestershire, but according to the building's owners there has never been a firm of that name in any of the site's offices.

Potentially, hundreds of road users may be driving uninsured after having bought a bogus policy.

An East Lothian Trading Standards officer, who was alerted to the fraudulent firm by Leicestershire Trading Standards, stated, "Aston Midshires Insurance sold car insurance aimed at young drivers but it appears that the policies paid for are not valid which means their vehicles are not insured.

"This means possible serious consequences for the uninsured driver and also for others who may be involved in an accident."

Any motorists who received car insurance for newly qualified drivers from Aston Midshires Insurance should stop using their vehicle and contact the police (on a non-emergency police number) or Trading Standards.