AUSTIN, Texas (KWTX) The Texas Department of Insurance Tuesday issued a warning to Texas drivers hunting for bargain auto insurance about a scam that could leave them without the coverage they paid for.
Victims of the scam think they’re buying the liability coverage the state requires from an insurance agent, but instead of sending the payment to an insurance company, the scammers keep the money and issue fake insurance cards and other documents, the TDI said.
“Most people wouldn’t realize they’d been scammed until they get in an accident or get pulled over for a traffic violation,” TDI’s fraud chief, Chris Davis, said.
Officials are advising residents to make payments directly to insurance companies rather than directly to an agent; to check with insurance companies to make sure they have valid policies, and to make sure they’re dealing with licensed agents.
Residents who suspect fraud or who want to check on whether an agent or a company is licensed may call the department’s Help Line at 1-800-252-3439.