Avoid being the next victim of fake car insurance policies

Watch out for scammers selling fake auto insurance policies. (iStockPhoto)

By Karin Price Mueller | NJ Advance Media for NJ.com

A car stops suddenly in front of you, you hit your brakes, hear the screech of the tires, and brase for the collision. This is a nighmare every driver fears.

You check, your alright, the other driver seems OK, but then you see the thousands of dollars of damage and your heart stops- “But it least I’m insured.”

You trade information with the other party, show the policy your car insurance ID. card. you drive your mangled auto home, or have it towed to a shop. You curse yourself or the other driver, the day that started with such promise has turned to S#it- but at least you have car insurance.

It’s a few days later, after a representitive of the company named on your card calls you with the bad new- your insurance policy was a fake.

Oh yeah, you paid someone real money, but they sold you a fake car insurance policy. The company that is listed on the form is either made-up, or they used the name of some real company but that company know nothing about you because they did not issue the proof or policy.

As Karin Price Mueller point’s out, “The scam is a huge problem in Michigan, where earlier this year, a one-day spot check of drivers revealed 16 percent had invalid or fake insurance cards. Crooks pretending to be insurance agents have flooded the state, mostly in urban areas, offering cheaper-than-average auto policies. Policies that turn out to be bogus.” In fact the state of Michigan found. that in some counties, nearly 50 percent of all insurance certificates were fraudulent.”We are going to put the brakes on the criminals who are selling this stuff and are preying on unsuspecting Michigan drivers,” according to Michigan Secretary of State Ruth Johnson.

At Urban Insurance, we have seen a rise in fake car Insurance policies in the resent year. There are cases where in individual creates the ID themself, but often they are victims of crooks. With the internet, is is often fast and easy for scamer to “Copy and Paste” a company’s logo onto a form and create a realistic fake ID, and policy. We have recieved calls from people that thought they bought a car insurance policy from us, only to find out they paid some “Fly-by-night” scam-artist who took their money and vanished.

Below are four ways to avoid buying Fake Car Insurance

1. Research the company.

This might sound silly but if a guy is selling insurance out of his van, warning bells should be going off in your head. A Real insurance agency will be working out of an office, with published phone numbers. Expect to find desks, fax machines advertisments online, print and a variety of clues that show this is a business that has a history and will be around when you need them.

2. Call the company.

Before you purchase the insurance from an “agent” confirm that the phone numbers actually check out, and the company has an agent by the name of the person asking you to hand him money. If the offer is too good to be true, there’s a good chance it is fake. You can verify the company and agent on Google, with the Illinois department of insurance, and the Better Business Bureau.

3. If they only take cash, that is another cause to worry.

If you are told they only take cash or checks, ask why? It is unlikely to find an actual insurance agency or company that will not accept credit cards, or offer to set up a monthly payment plan.

4. Watch out for anyone willing to violate the law if you pay them now.

Insurance agents and companies have to follow all laws pertaining to insurance, to ignore the rules can result in the agent losing their license and business. This is of great concern to real agents, but not to fake ones; so if the person is willing to “backdate” your coverage,or tells you not to worry about adding drivers, they will do that after you have an accident- assume that your policy is fake.

Quote, Buy, and then Print your Policy

Have Questions or Prefer to Talk to an Insurance Agent?

Just give us a call at (312) 664-8088.

Our friendly and professional auto insurance agents are available to talk to you Monday – Saturday from 8:00A – 6:00P

Urban Insurance Agency, LLC / 800 w Huron Suite #301 Chicago, IL 60642 / 312-664-8088