Fake car insurance is something most of us won’t run across very often. However, some recent reports indicate that a few companies may be involved in selling false auto insurance as part of a range of scams that prey on consumers. It’s also possible that some individuals and families are seeking out fake car insurance to evade the cost of actual insurance.
For most consumers, the issue is how to tell if your auto insurance company is selling the real deal, or just passing off false insurance papers and a novelty insurance card and keeping your money. Here are some ways consumers can tell if an auto insurance company is on the level.
Auto insurance companies, like other insurance companies, are required to keep state licenses and other documentation on display to prove that they legitimately deal in this kind of insurance. Agents have to be state certified in order to write auto insurance policies. A few quick questions can help determine that your company has the accreditation and certifications to offer you a real auto insurance policy.
Auto insurance companies have a routine lingo that they use on auto insurance policy documents. This includes separate components for split limit or single limit liability, collision or comprehensive coverage, uninsured or underinsured motorist coverage, road safety assistance and other extras. A spare document without these details can be a sign that your auto insurance company is be lacking some of what you want in an insurer, or even if their product is actually fake.
One hint that often tips customers off to a fly by night company is a silly name, or an unfamiliar name, with no specific associations to a larger company or auto insurance group. That doesn’t mean that smaller companies can’t offer auto insurance, just that they generally don’t have the same scrutiny that’s focused on the larger auto insurance companies.
Lowball cost figures are often a sign of a fake auto insurance policy. Most auto insurance policies will cost more than $50 a month. If a policy is significantly less, it could mean that the driver is not carrying sufficient coverage, or that the insurance product could be false.
When individual drivers use false auto insurance on the road, it can be hard for law enforcement to find out about it. Since auto insurance papers are relatively easy to forge, these kinds of schemes are most likely to be caught when insurance is run at a local magistrate’s office, or in the unfortunate event of a crash. In these cases, carrying fake auto insurance will have some extreme consequences. Even if a carrier can prove that they were duped into buying the product, there can still be a lot of problems over who will pay a claim and what will happen to the parties involved.
Be vigilant in spotting fake auto insurance wherever it is, and help to protect the entire driving community from the harmful effects of uninsured driving.