Connecticut Regulators Warn Drivers: Auto Insurance Fraud Risks Money And Lives
September 2nd, 08The Connecticut Department of Insurance issued a statement earlier today, warning drivers about the menace of relying on fraudulent auto insurance providers.
This year’s economic troubles have put a strain on drivers’ budgets, and the Department of Insurance is worried that some Connecticut drivers might rely on phony auto insurance providers to trim their household expenses. However, by buying auto insurance cards issued by scammers, rather than legitimate insurance providers, these drivers only risk losing everything.
The scam? Real auto insurance providers in the state of Connecticut always issue cards to their policyholders, as proof of their coverage. Car owners must show these cards to officials whenever they register their cars. State law mandates that they permanently retain these cards in their vehicles–a law that the policy routinely enforce on Connecticut drivers.
Recently, however, there’s been a spate of cards issued by fraudulent persons or organizations. Drivers have even been known to purchase these cards without apparent awareness of their fraudulent nature.
The Connecticut Insurance Department warned drivers that, “while legitimate insurance coverage provides protection for you, your family, and other people injured in a motor vehicle accident, trying to use fake insurance leads only to trouble.”
If you get into an accident, the issuer of your fake auto insurance card will not be able to cover you for any of the financial losses you sustain. You may end up having to pay for all the damage done to other drivers’ vehicles or person, costs that can easily add up to tens of thousands of dollars. Although you will have saved money at first, buying a fake auto insurance card, after an accident you could end up under sever financial strain, or possibly bankrupt.
The Insurance Department cited an additional example of the perils of fraudulent insurance sales. A husband and wife from Waterbury, CT had paid $540 to someone claiming to represent the Nationwide Insurance company. They did not subsequently receive their card or policy statements. Instead, they receive a phone call from their “agent” asking for an additional $600. If they did not pay up, the “policy” they bought would be taken away, said the scammer.
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