It is quite unfortunate to note that there are so many scams all over the world. There are some people who make a living by cheating others and swindling their money. California car insurance is one such scam, which has become known in the recent days. They sell counterfeit car insurance claiming it as cheap auto insurance. Though the insurance looks real, the insurance coverage is either invalid or does not exist. This article will help you to know about different types of car insurance scams that are out there.

First, you should know about the most common car insurance scams. An individual will pretend to be a licensed auto insurance agent or broker. This person will charge a fee to prepare a quote for you. This quote is significantly less than what you are presently paying or have been quoted.

The fake insurance broker now has all of your personal information including your driving history. This individual now calls a licensed insurance company for an auto insurance quote and pretends to be you. To get a lower rate he or she will state that you belong to a group that is eligible for a discount or will omit your accidents or traffic violations. You then proceed to pay your premium directly to the insurance company and receive a proof of insurance coverage.

You think you now have inexpensive car insurance but what you need to be aware of is no licensed insurance agent or broker will ever charge a fee. The coverage you now think you have is invalid as the information that was given to the company is untrue.

Another type of car insurance scams is marketing that offers cheap car insurance premiums. The advertising shows the coverage at rates significantly lower than the insurance you now have. Sometimes the offer is for free auto insurance for a period of time, for example "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.

Now you are happy assuming that you have a great deal on insurance. You will be shocked to know that in reality the policy was never issued. The scam person pocketed your payment.

The scammers will say that there is no free lunch to pose like a genuine person. However, you should keep it in mind that driving without valid auto insurance is against the law. It is up to you to ensure that you have valid auto insurance. I am sure you will like to find out that you do not have valid auto insurance after meeting with a car accident or by being pulled over by the police.