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Car insurance scams to avoid

Fake policies, "ghost brokers" and cheap-quote traps.

5 min read

Some scammers sell fake car insurance or collect premiums on policies that never exist, often through social media or by phone with prices that seem too good to be true.

Warning signs

  • A price far below every other quote
  • Payment only by gift card, wire transfer, payment app or cash
  • A "broker" who can't give a license number, or an insurer you can't find on your state's list
  • Insurance cards with no policy documents
  • Pressure to buy immediately

Protect yourself

  1. Check the insurer and agent licenses with your state insurance department.
  2. Call the insurer directly, using a number from its official website, to confirm the policy exists.
  3. Pay the insurer or a licensed agent, by card or check.
  4. Keep your policy documents, not just the ID card.

Report it

Report suspected insurance fraud to your state insurance department's fraud unit and to the FTC at ReportFraud.ftc.gov.

Educational information, not insurance advice. Coverage and rules vary by state and insurer; your policy documents control. Trusted Auto Insurers is not an insurer, agent or broker and takes no commissions.