There are many different scams out there and it is an unfortunate reality that we live in a world where people spend their days thinking up schemes to cheat us of out our money. California car insurance is getting a bad rap due to all of the counterfeit car insurance schemes that are out there. One escalating car insurance scam involves the sale of "cheap" auto insurance to unsuspecting buyers. The auto insurance looks real but in reality it is coverage that is invalid or doesn't exist. This article should help you be aware of the different types of car insurance scams that are out there.

First, you should know about the most common car insurance scams. You will fall a prey to an individual pretending to be a licensed auto insurance agent or broker. He will cheat you in two ways. This person will charge a fee to prepare a quote for you. (Officially, there is no such charge). The fake insurance agent will offer you a quote, which is significantly less than what you are presently paying or have been quoted.

The fake insurance broker gets all your personal information including your driving history. This fake broker will now call a licensed insurance company for an auto insurance quote and pretend to be you. The fake broker will add that you belong to a group that is eligible for a discount. You can then pay your premium directly to the insurance company and receive a proof of insurance coverage.

You will be happy thinking you now have cheap car insurance. Nevertheless, you need to understand that no licensed insurance agent or broker can ever charge a fee. Your insurance coverage is invalid as the information that was given to the company is false.

You should also know about another type of car insurance scam. This scam is marketing offers for cheap car insurance premiums. They will advertise stating that the coverage rates are significantly lower than the insurance you now have. Sometimes they may even offer free auto insurance for a period of time, say, "The first three months free.

You are provided with a phone number in the in the marketing materials. You call that number and then you are provided with a quote. To accept the quote you are asked to remit either a partial or full payment through a transfer or money wiring service. There might even be an option to meet in person so that you can pay in cash or with a cashiers check.

You may be proud that you have a great deal on insurance. Nevertheless, in reality the policy was never issued. You will be shocked when you realize that the individual you contacted pocketed your payment.

There is no free lunch, which is to say if it sounds too good to be true it probably is. Remember, driving without valid auto insurance is against the law. It is your responsibility to ensure that you have valid auto insurance. You do not want to find out that you don't have valid auto insurance by being involved in an auto accident or by being pulled over by the police.