Texas Department Of Insurance issues warning about auto insurance scam

AUSTIN, TX -- The Texas Department of Insurance (TDI) is warning Texas drivers looking for bargain insurance about a scam that leaves them with no coverage even after they’ve paid for it.

Victims of the scam believe they are buying required liability coverage from an insurance agent. Instead of sending the payment to the insurance company, criminals keep the money and give the customer fake insurance cards and other documents.

“Most people wouldn’t realize they’d been scammed until they get in an accident or get pulled over for a traffic violation,” said TDI’s fraud chief, Chris Davis.

To help protect yourself from this scam:

Make your payments to the company, not directly to the agent.
Call the insurance company to make sure you have an active policy.
Make sure you are dealing with a licensed agent.
Call TDI’s Help Line at 1-800-252-3439 to check on an agent or company’s license or if you suspect fraud.