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What You Should Know About Car Insurance Scams

There are many scammers living all over the world cheating the innocent people. They think deeply to find out various methods of cheating the ignorant people... California car insurance scam is one of such scams, which you should know about. The scammers have a counterfeit car insurance scheme. They offer cheap car insurance to innocent buyers. The auto insurance though looks real in reality it is not so. The coverage is either invalid or does not exist. The objective of this article is to educate you different types of car insurance scams that are out there.

First, you should know about the most common car insurance scams. An individual will pretend to be a licensed auto insurance agent or broker. This person will charge a fee to prepare a quote for you. This quote is significantly less than what you are presently paying or have been quoted.

The fake insurance broker now has all of your personal information including your driving history. This individual now calls a licensed insurance company for an auto insurance quote and pretends to be you. To get a lower rate he or she will state that you belong to a group that is eligible for a discount or will omit your accidents or traffic violations. You then proceed to pay your premium directly to the insurance company and receive a proof of insurance coverage.

You think you now have inexpensive car insurance but what you need to be aware of is no licensed insurance agent or broker will ever charge a fee. The coverage you now think you have is invalid as the information that was given to the company is untrue.

You should also know about another type of car insurance scam. This scam is marketing offers for cheap car insurance premiums. They will advertise stating that the coverage rates are significantly lower than the insurance you now have. Sometimes they may even offer free auto insurance for a period of time, say, “The first three months free.

The scam agent will provide you with a phone number in the marketing materials. When you call that number they will provided you with a quote. To accept the quote they will ask you to pay either a partial or a full payment through a transfer or money wiring service. They may even ask you to meet in person so that you can pay in cash or with a cashiers check.

You now think you have a great deal on insurance but in reality the policy was never issued. The individual you contacted pocketed your payment.

There is no free lunch, which is to say if it sounds too good to be true it probably is. Remember, driving without valid auto insurance is against the law. It is your responsibility to ensure that you have valid auto insurance. You do not want to find out that you don’t have valid auto insurance by being involved in an auto accident or by being pulled over by the police.

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