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 have paid for it.
According to the TDI, victims of the scam believe they are buying required liability coverage from an insurance agent. Instead of sending the payments they receive from their victims to the insurance company, however, 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 the TDI's fraud chief, Chris Davis.
To help protect themselves from this scam, drivers should:
- Make payments to their insurer, not directly to the agent.
- Call the insurance company to make sure they have an active policy.
- Make sure they are dealing with a licensed agent.
- Call the TDI's help line at 1-800-252-3439 to check on an agent or company's license or if they suspect fraud.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].