Beaware Of Car Insurance Scams | Insurance

By SusanTanner
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It is quite unfortunate to note that there are so many scams all over the world. There are some people who make a living by cheating others and swindling their money. California car insurance is one such scam, which has become known in the recent days. They sell counterfeit car insurance claiming it as cheap auto insurance. Though the insurance looks real, the insurance coverage is either invalid or does not exist. This article will help you to know about different types of car insurance scams that are out there.

First, you should know about the most common car insurance scams. You will fall a prey to an individual pretending to be a licensed auto insurance agent or broker. He will cheat you in two ways. This person will charge a fee to prepare a quote for you. (Officially, there is no such charge). The fake insurance agent will offer you a quote, which 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.

.The scam people will advertise that they can get car insurance coverage at fewer premiums. The advertiser shows the coverage at rates significantly lower than the insurance you currently have. Sometimes they will give offer free auto insurance for a period, for instance "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.

Now you are happy assuming that you have a great deal on insurance. You will be shocked to know that in reality the policy was never issued. The scam person pocketed your payment.

The scammers will say that there is no free lunch to pose like a genuine person. However, you should keep it in mind that driving without valid auto insurance is against the law. It is up to you to ensure that you have valid auto insurance. I am sure you will like to find out that you do not have valid auto insurance after meeting with a car accident or by being pulled over by the police.

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