Penalty For Fake Insurance Card
Fake car insurance scams are surprisingly common. Many bargain hunters fall for promised savings of hundreds or thousands of dollars in savings per year, and only realize they were scammed when they went to file a claim or were stopped by a police officer. Exact statistics on the number of people scammed are difficult to come by, but industry analysts believe that the problem of fake auto insurance is becoming more and more common as photoshopping techniques become more advanced and the internet helps scammers reach more desperate people.
When shopping for car insurance, if a deal sounds too good to be true, it probably is too good to be true. Quotes that seem drastically lower than other quotes and companies with unfamiliar names should be double checked.
Other red flags to look out for involve door-to-door insurance sales, agents willing to backdate your policy, demands of cash payments, misspellings on the paperwork given to you by the insurance agent, and misspellings on their website or in e-mail correspondence.
If you suspect your current insurance is fraudulent, do not delay. Contact the company listed on your card immediately, but not through the same agent or website you purchased it from. Your state DMV or insurance department should be able to help you investigate the legitimacy of your insurance.
Fake Car Insurance is a Crime
If you are found to have fake car insurance, you will face consequences. To try and combat the rise in fake car insurance, many states are adopting real-time electronic verification systems to check policies in seconds, and will occasionally set up sting operations.
While driving without insurance will often result in a ticket or a license suspension, driving with fake insurance could mean that plus a fraud conviction. Punishment varies slightly state to state, but fraud convictions usually fall under the felony category and are often punishable by up to five years in prison, or a fine of around $10,000.
Even if you thought you had purchased a real insurance policy, and present your card in good faith, you could still face consequences.
Fake Car Insurance Doesn’t Protect You
Fake auto insurance will never pay a claim from an accident. This includes claims you file, and claims filed against you by others affected by an accident. As stated above, even if you present your fake insurance believing it is real, you will still be on the line for costs caused by the accident. This could include medical bills, rehabilitation costs and lost wages of those involved with the crash, and any damage to public or private property damaged in the accident, such as the other driver’s car, or light posts. The costs of these damages can often run into the tens of thousands of dollars, all of which you would be on the hook for.
Affordable Alternative to Fake Car Insurance
Online comparison shopping for car insurance rates is the best strategy for finding low-cost insurance. If cost is a big issue, look for basic coverage that only supplies the minimum coverage limits required by your state. When you reach out to the individual companies after comparison shopping, make sure to ask the agent what additional discounts you could qualify for. Insurance providers will often give better pricing to customers with safety devices and anti-theft devices in their vehicles, or to those who bundle insurance along with additional vehicles, or home insurance.