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.

One of the most common car insurance scams is an individual pretending to be a licensed auto insurance agent or broker. This person charges a fee to prepare a quote for you. The quotes for the auto insurance coverage are at a rate significantly less than what you’re 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.

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.

.The scam people will advertise that they can get car insurance coverage at fewer premiums. The advertiser shows the coverage at rates significantly lower than the insurance you currently have. Sometimes they will give offer free auto insurance for a period, for instance “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.

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.