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We frequently hear about people trying to get one over on the insurance company but we forget that sometimes, it can be the insurance company scamming a customer. Now most of your big branch insurance companies aren’t going to do this because they don’t need to. They already earn enough of a profit to run their business legitimately and this also applies to small insurance agencies. It’s called business ethics. Does it still happen? Plainly put, yes.
The Michigan Office of Financial and Insurance Regulation (OFIR) has issued a warning to some drivers that may have purchased a fake insurance certificate from an unlicensed individual. Mervin Graber claimed he was representing Tennessee Christian Motorist Aid when he sold the fake policies but it turns out that was false. This means that those who purchased coverage from Graber may be putting themselves in danger. OFIR Commissioner Kevin Clinton issued a message to Michigan drivers: “Any driver who purchased fake auto insurance from Mervin Graber needs to purchase legitimate coverage immediately. Right now, they’re driving without insurance.”
If you don’t have insurance, you are breaking the law. If any of these drivers were to get in an accident with Graber’s fake auto policy, there could be disastrous repercussions. While this isn’t a common tale, it’s obvious that it still happens. People will always try to run a scam but for it to work, you have to be a victim. If you know how to spot a scam from 10 feet away, you’ll be protecting yourself in more ways than one.
Fake Car Insurance
Maybe you were trying to save a few dollars or maybe you just needed a policy quick and didn’t have the time to explore your options. Either way, you got duped and you now have a fake insurance policy. The first thing you need to do is get a real insurance policy. It may cost more and take a little bit of research on your part but that’s because it’s real and covers real problems. But how do you spot fake insurance? There a few ways you can tell if something seems fishy.
Licensing
A legitimate auto insurance company is going to have a business license issued by the state board. In addition to this, the insurance representatives are going to have multiple levels of certification and it’s likely they will be displayed on a wall somewhere. Door to door salesmen are a thing of the past so if someone knocks at your front door trying to sell insurance, politely send them away. Even if you’re in an office and things don’t seem right, don’t be afraid to ask for a business’ credentials. People can feel intimidated in this situation and therefore, take what
an agent says for granted. But remember
that you are giving them a good chunk of your money. You should feel confident about the people that are protecting your assets.
The Policy
State to state and company to company, your insurance levels are going to vary but an auto insurance policy is a pretty standard document. It will list your coverage amounts and exclusions, mentioning things like split liability coverage and road safety assistance. You should have a copy of your policy. Granted, it’s probably going to contain a lot of insurance legal language but if you have a real, reliable insurance agent, they will be happy to go through it if you have any questions. If an ‘insurance agent’ hands you a sheet of paper that looks like it was printed off their personal computer, there should be a variety of flags, bells and whistles sounding in your brain. That’s a fake insurance policy.
Cost should be a clue as well. If your annual premium seems too good to be true, even after receiving two DUI’s, it’s likely that it is and you now have fake insurance in addition to your previous charges.
The Results of Having Fake Insurance
People that sell fake insurance to unknowing customers often prey on those who may not have the resources to buy real insurance or are just too trusting. The worst part is that fake insurance policies are pretty hard to spot because they aren’t monitored. When you register a car, normally you have to present some form of insurance but if you switch carriers after that, you aren’t required to notify the DMV. It’s required by law to have insurance so the law assumes you will and if you don’t you will be held accountable. Unfortunately, many people find out that they have fake insurance policies when its too late. They may have been in a terrible accident and go to cash in their policy when they find out it doesn’t even exist. Therein lays a dilemma. If you caused the crash, who will pay for the damages? Even if you can prove you thought it was a real policy, somebody is going to be seeking reparations which might lead to a lawsuit.
No matter what, having a fake insurance policy never ends well so it’s always a good idea to keep your guard up when you travel off the beaten path of the big name insurers. There are many small, reputable, local branches that sell wonderful insurance products but you can easily tell they are the real thing. Trust your gut. If someone doesn’t seem like they are selling an honest product, you aren’t obligated to buy. Explore your options and you will find the best coverage for your needs.
