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Beaware Of Car Insurance Scams

May 3, 2008
There are many scammers living all over the world cheating the innocent people. They think deeply to find out various methods of cheating the ignorant people... California car insurance scam is one of such scams, which you should know about. The scammers have a counterfeit car insurance scheme. They offer cheap car insurance to innocent buyers. The auto insurance though looks real in reality it is not so. The coverage is either invalid or does not exist. The objective of this article is to educate you 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.

Now you think you are clever enough to have inexpensive car insurance. However, the fact is no licensed insurance agent or broker can ever charge a fee. Moreover, the coverage you now think you have is invalid, because 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.

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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