Hundreds of drivers who have buying cheap car insurance could find their insurer is running a scam and they are on the roads without any cover.
Trading standards have uncovered a major car insurance fraud that has sold worthless car insurance cover to young drivers.
Along with police and the Financial Services Authority, they are investigating Aston Midshires – a bogus car insurer claiming to run a business from an industrial estate in Enderby, Lincolnshire.
More than 30 drivers have complained they have bought cover that does not exist – and police are regularly dealing with drivers all over the country who produce invalid car insurance documents from the company.
The firm has stopped trading, taken down a web site and cut off phones since the inquiry started.
Landlords at Enderby say Aston Midshires has never had an office at the posted address.
David Bull, Head of Leicestershire County Council’s Trading Standards Service, said: ”Trading Standards has worked with Leicestershire Police to stop consumers being conned into buying invalid and illegal motor vehicle insurance from this business.
“If you have purchased your insurance from Aston Midshires do not drive your car until you have valid insurance.”
“There may be hundreds and possibly thousands of people out there who have got vehicles that aren’t insured. There’s consequences not just for them but also for those people they may have an accident with.”
Drivers are urged to check out cheap car insurance deals before paying over any cash – not only will they lose their money, but they could also be liable for the costs of any claim if involved in an accident.
Police are unlikely to take action for cases of driving without insurance as policies would have been bought in good faith.