Automotive Journal

There are many different scams out there and it is an unfortunate reality that we live in a world where people spend their days thinking up schemes to cheat us of out our money. California car insurance is getting a bad rap due to all of the counterfeit car insurance schemes that are out there. One escalating car insurance scam involves the sale of “cheap” auto insurance to unsuspecting buyers. The auto insurance looks real but in reality it is coverage that is invalid or doesn’t exist. This article should help you be aware of the 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.

Now the fake insurance broker is having all of your personal information including your driving history. This fake agent will now call a licensed insurance company for an auto insurance quote with your identity. The fake agent will say that you belong to a group that is eligible for a discount. The fake agent will not show your accidents or traffic violations. You can then pay your premium directly to the insurance company and receive a proof of insurance coverage.

You will be happy thinking you now have cheap car insurance. Nevertheless, you need to understand that no licensed insurance agent or broker can ever charge a fee. Your insurance coverage is invalid as the information that was given to the company is false.

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 insurance broker will provide a phone number in the marketing materials. If you call that number, you will get a quote. They may ask you to remit either a partial or a full payment through a transfer or money wiring service. In order to accept that quote. There may even give you an option to meet in person to 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.

They will say that there is no free lunch to sound good…You should not forget that driving without valid auto insurance is against the law. Therefore, you should ensure that you have valid auto insurance. I am sure you will not want to find out that you do not have valid auto insurance when involved in an auto accident or by being pulled over by the police.