Driver warning: Make sure your auto insurance is legit - PropertyCasualty360

No. 1: Insureds should verify that they working with a licensed insurance agent.

(Photo: Shutterstock)

No. 2: Insureds should make payments directly to an insurance company.

(Photo: Bigstock)

No. 3: Call the insurance carrier to ensure a policy is active.

(Photo: iStock)

The Texas Department of Insurance (TDI) recently issued a warning regarding a scam that targets drivers looking for bargain car insurance.

The swindle, which is not unique to Texas, happens when victims walk into what looks like a  brick and mortar insurance office, hand over money to an alleged agent, then walk out with insurance cards and what they think is sufficient coverage.

In fact, the insurance policy, documents, agent and office are all an elaborate ruse.

“Most people wouldn’t realize they’d been scammed until they get in an accident or get pulled over for a traffic violation,” said TDI’s fraud chief, Chris Davis, said in a press release.

Victims of the scam believe they purchased liability coverage from an insurance agent. But scammers pocket the money instead of forwarding it to an auto insurance carrier.

The slideshow above highlights three tips the TDI has for consumers to help them avoid this scam. Anyone who suspects they’ve been victimized should contact their state insurance department. In Texas, the number is 1-800-252-3439.

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