Fake Auto Insurance: Risks & Avoidance

In almost every state, vehicle insurance is not just a luxury but a legal requirement. Motorists must obtain liability and other state-mandated coverage to legally operate their vehicles on the road. Failing to have valid insurance while driving is a clear violation of the law. Moreover, attempting to evade this responsibility by resorting to fake car insurance cards is a form of insurance fraud, compounding the seriousness of the offense. Besides, people are unlikely to get away with it as authorities have a way of quickly checking if a vehicle is insured or not. Let’s discuss the risks, consequences and avoidance measures below.

How People Obtain Fake Vehicle Insurance Cards

Having a fake card can lead to serious legal and financial troubles, regardless of knowing it is fake or falling victim to fraudulent individuals looking to grab your cash. If you are thinking about it, you’d better think twice. And don’t take your cheap auto insurance search too far to a point that you are an easy prey.

  1. On purpose: Some individuals knowingly acquire fake car insurance cards because they don’t want to pay for a real policy. Unfortunately, it isn’t difficult to find templates online and use programs that help people create counterfeit documents to deceive authorities into believing they are insured. However, this comes with significant risks and penalties and it may be a futile attempt anyway, as discussed below.
  2. Conned: Others may unknowingly purchase fake auto insurance from illegitimate providers who trick them into believing they are obtaining authentic coverage at unbelievably low rates. Ghost agents, in particular, pose a serious threat by presenting themselves as intermediaries between drivers and insurance providers and selling fake policies. If a motorist gets a few quotes, they will know roughly how much they need to pay to insure their automobiles. If suddenly a shady source is offering a policy at substantially cheaper rates, they should pay a very close attention to details so as not to fall victim to fraudsters.

Penalties for Getting Caught with Fake Car Insurance

Driving without insurance is already illegal and has severe consequences. Carrying a fake vehicle insurance card is an insurance fraud as well and often it may not matter much that you knew about it or not in terms of facing below consequences of driving without insurance:

  1. Your vehicle may be impounded once you are caught.
  2. Your driver’s license and vehicle registration may be suspended or revoked.
  3. You may have to pay hefty fines and impound fees.
  4. You may face potential jail time in certain circumstances.
  5. You will still have to pay for damages and injuries resulting from an at-fault accident, potentially costing thousands of dollars out of pocket.
  6. It will be very difficult and expensive to find vehicle insurance with a policy lapse and insurance fraud in your record.

The Futility of Having Fake Auto Insurance

The world is well connected today and authorities have already caught up with several attempts to circumvent insurance laws and find solutions to stop offenders. The notion of using an insurance card you made yourself is futile and dangerous for several reasons:

  1. DMV has the records: Today, many states require insurance companies to inform them when an automobile insurance policy is cancelled and sold. So, the DMV has a system of matching insurance with vehicle registrations in the state. So, they already know which car is insured or not.
  2. Efficient checking: Authorities, including police officers and the DMV, have sophisticated systems to verify insurance information quickly. Attempting to deceive them with fake cards is likely to fail and you may be a sitting duck in your car while they verify that your card is a forgery.
  3. Other people will find out soon enough: If you are involved in an accident and present fake insurance details to the other drivers involved, they will find out pretty quickly that the details aren’t correct. They probably still have your name, driver license number and the description of the vehicle and its license plate. It won’t take long for them to alert the authorities.

Recognizing and Avoiding Fake Auto Insurance

It is worth mentioning that the insurance industry is highly regulated and both the insurers and agents must be authorised in the states they do business in. Nevertheless, there will always be someone trying to make a quick buck out of motorists desperately looking for cheap car insurance. By watching out for the below red flags motorists can avoid falling victim to fraudsters selling fake vehicle insurance:

  1. Licenses: Licensed agents would proudly display their licenses in their office and it may be a requirement to do so in many states. Lacking such certificates in an agent’s wall may be a red flag. If you are in doubt, ask for their license number and check with the state authorities.
  2. The look: Authentic policies and cards are professionally written, so any misspellings, errors or smudged or faded ink should raise suspicion.
  3. Cash Payments: Legitimate insurance agents or companies do not require cash or money order payments, so such demands must be met with suspicion.
  4. Backdating: Beware of underwriters offering to backdate insurance policies, as this is not a practice of reputable providers. If anyone approaches it as if it is nothing, you should know that they are not probably selling you a real policy.
  5. No documentation coming: Failure to receive an insurance binder or proper documentation is a sign of potential fraud. Today, companies and agents send almost instant e-mail confirmation of coverage and policy documents may already be included or follow shortly. If they are not coming, you should start looking into it. In any case, motorists should always look for confirmation of coverage before they start driving.

Shop for Legitimate and Affordable Car Insurance

Instead of resorting to fake vehicle insurance, individuals should shop around to find the cheapest liability vehicle insurance from reputable and licensed providers. Many companies offer competitive rates and independent agents can shop around for you. You can also get a few quotes online using comparison websites or going directly to the insurer’s website. Drivers can obtain the coverage they need without risking legal and financial trouble and they can spread the payments to suit their budget.

Motorists should always ensure they have valid and legitimate automobile insurance coverage to protect themselves and others on the road. It is important to avoid scammers by being alert. And it isn’t in any way or shape a responsible action to create a fake automobile insurance card and knowingly drive around with it knowing full well you aren’t insured. You are unlikely to fool anyone. And even if you do so, you still run the risk of causing an accident, resulting in thousands of damages and injuries to third parties and your vehicle. You cannot run away from it because you are legally responsible for damages and injuries you cause.