Dont Be Fooled By Car Insurance Scams
May 3, 2008 – 5:53 amIt 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 gets all your personal information including your driving history. This fake broker will now call a licensed insurance company for an auto insurance quote and pretend to be you. The fake broker will add that you belong to a group that is eligible for a discount. 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.
Another type of car insurance scams is marketing that offers cheap car insurance premiums. The advertising shows the coverage at rates significantly lower than the insurance you now have. Sometimes the offer is for free auto insurance for a period of time, for example “the first three months free”.
You are provided with a phone number in the in the marketing materials. You call that number and then you are provided with a quote. To accept the quote you are asked to remit either a partial or full payment through a transfer or money wiring service. There might even be an option to meet in person so that you can pay in cash or with a cashiers check.
You may be proud that you have a great deal on insurance. Nevertheless, in reality the policy was never issued. You will be shocked when you realize that 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.
Tags: Insurance
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