Who: Your state insurance commissioner handles complaints about insurers and agents.
When to use: Use when you bought a fake policy or an agent kept your premiums.
What to prepare:
- Company or agent name
- Amount paid
- Policy or documents
Category: Financial & banking
Fake insurance & insurance agent scams
How it often plays out
Maria pays an "agent" for a year of auto insurance. When she has an accident and files a claim, her insurer says they have no record of her policy. The agent had pocketed her premiums and never sent them to a real company—or sold her a fake policy from a phantom insurer. Premium diversion and fake policies are common: scammers pose as agents or use fake company names, collect premiums, and disappear or string victims along until a claim reveals the truth. Real insurers are licensed in your state; you can verify an agent or company with your state insurance department before paying.
How to spot it
- Policies or agents you cannot verify with your state insurance department.
- Pressure to pay in cash, wire, or gift card only.
- Unusually low premiums or "too good to be true" coverage.
- No written policy or documentation from a known insurer.
Do's and don'ts
Do
- Verify the company and agent with your state insurance department (NAIC or state DOI) before paying.
- Get a written policy and confirm directly with the insurer that you are covered.
- Save all payments, correspondence, and policy documents; report to your state insurance commissioner and FTC.
Don't
- Pay premiums to an agent or company you have not verified as licensed.
- Buy insurance from someone who only accepts cash, wire, or gift cards.
- Assume a website or card makes them legitimate; check with the state DOI.
Summary & what to do
Scammers sell fake insurance policies or pose as agents and keep your premiums without providing real coverage. Verify any agent or company with your state insurance department before buying. Report to your state insurance commissioner and the FTC.
What to do right now
- Verify the company and agent with your state insurance department before paying. Use NAIC's OFRS or your state DOI.
- If you already paid and discover the policy is fake, stop paying and gather all documents and payment records.
- Report to your state insurance commissioner (via OFRS or state DOI) and to the FTC.
Where to report
Who: NAIC's Online Fraud Reporting System (OFRS) accepts insurance fraud reports.
When to use: Use to report fake policies, phantom insurers, or premium diversion.
What to prepare:
- What happened
- Agent or company
- Amount lost
Who: The FTC collects reports of consumer fraud including fake insurance.
When to use: Use to report the scam.
What to prepare:
- What happened
- Amount paid
FTC ReportFraud~5 min
Build your knowledge: Recommended reading — books & free websites on financial literacy and fraud awareness