Insurance Scams
Protect yourself from fake insurance policies, premium fraud, and claim scams. Learn to verify legitimate coverage and avoid insurance fraud.
Back to All ScamsHow Insurance Scams Work
Insurance scammers target people looking for affordable coverage by offering policies at unrealistically low prices. These fake policies often look legitimate with official-looking documents and websites, but provide no actual coverage when claims are filed.
Some scammers operate as unlicensed agents, collecting premiums for real insurance companies but never actually purchasing the policies. Others create entirely fake insurance companies that disappear when claims are made.
Common Examples
Warning Signs
- Unsolicited calls or emails offering cheap insurance
- Pressure to buy immediately with limited-time offers
- Requests for upfront payments before coverage begins
- No physical address or legitimate contact information
- Prices significantly below market rates
- Unlicensed agents or companies not registered in your state
- Vague policy details or refusal to provide written documentation
How to Protect Yourself
- Verify insurance companies through state insurance departments
- Check agent licenses through official state databases
- Get all policy details in writing before paying
- Compare prices with multiple legitimate insurers
- Be wary of door-to-door or cold-call insurance sales
- Read policy documents carefully before signing
- Never pay premiums with gift cards or wire transfers
What to Do If You've Been Scammed
- Stop making payments to the fraudulent insurer immediately
- Contact your state insurance department to report the scam
- File a complaint with the FTC and local law enforcement
- Obtain legitimate coverage as soon as possible
- Document all communications and payment records
- Contact your bank to dispute fraudulent charges
- Consider legal consultation if significant money was lost
How to Report Insurance Scams
Report to your state's insurance regulator
Find Your StateReport insurance fraud and scams
Report to FTCVerify Before You Buy
Always verify insurance companies and agents through your state insurance department before purchasing any policy. Legitimate insurers are required to be licensed and regulated.