Spike in fake insurance cards

Some consumers, looking for the best car insurance deal, may find out the hard way that the discount was too good to be true. Read on for why all drivers pay the price for fake insurance cards.

'THEY TRULY THOUGHT THEY WERE PURCHASING REAL INSURANCE'

At Ann Nguyen’s office in Arlington, the State Farm Insurance agent is getting calls from consumers with questions about insurance paperwork Nguyen didn’t issue.

“This is an example of one fraudulent insurance card that someone had sent us,” Nguyen said of a digital card with a State Farm logo. “Some of the formatting is off a little bit.”

The card lists Nguyen’s name as the agent, but she didn’t issue the policy. It doesn’t exist. Nguyen said the consumers believed they bought liability insurance but paid someone through an unofficial website or social media. Consumers often discover the policies weren’t legitimate after a car crash or traffic stop.

“They truly thought they were purchasing real insurance and it's just very unfortunate,” Nguyen said.

It’s not just impacting Nguyen or State Farm. Across the board, the Texas Department of Insurance said there’s an increase in fraud reports about fake insurance cards.

In 2023, there were 38 reports to TDI. By 2025, the number climbed to 126. The TDI counted 37 fraud reports during the first three months of this year. A sign the problem isn’t slowing down.

SHOPPING VIA WORD-OF-MOUTH

The day we interviewed Nguyen, she said another call came in from Lisa Hartman in Minnesota. Hartman said she’s helping a consumer named Raul Manzano respond to a court summons after a traffic stop.

“They thought that they had insurance that would cover these things and they don't; it's been horrible,” Hartman told NBC 5 Responds.

Manzano now has to go to court for possession of an invalid, altered or fictitious insurance ID card.

In Spanish, Manzano told NBC 5 Responds he was looking for a cheaper policy when he paid $1,500 cash for what he thought was six months of car insurance coverage. Manzano said he didn’t have a U.S. driver's license and shopped through word-of-mouth. He said he paid someone who knew someone selling insurance.

Manzano said he didn’t notice that the proof of insurance document he received said Texas liability coverage – at least four states away from Minnesota.

Hartman said they can’t get in touch with the person Manzano paid. It’s not clear where Manzano’s money went.

“He has a work permit and he's trying to be here and do everything as legally as he can,” said Hartman.

In Texas, Nguyen said she’s trying to gather information about who sold consumers the fake insurance, “Who are you calling, where are you meeting these people?”

Nguyen said another consumer shared a phone number for a person they communicated with.

Telemundo 39 Responde reporter Olivia Martinez and NBC 5 Responds reporter Diana Zoga tried texting and calling the number. We didn’t hear back.

RED FLAGS TO KNOW

Nguyen said she’s primarily hearing from immigrants who bought fake insurance cards.

The TDI warns that anyone can be targeted.

“Don't be rushed to buy insurance. If you see something on social media that says, 'Hey, there's a great deal today,' insurance companies usually don't have sales,” said Mistie Hinote with the TDI.

Hinote said this scam touches all drivers. If an uninsured driver hits you, you’d have to file an uninsured motorist claim on your policy, assuming you have that coverage.

“That's money out of the insurance company's pocket and they're going to pass that on to policyholders with increased premiums. So, we're all seeing the effect of insurance fraud through our premiums,” Hinote said.

When shopping for insurance, the TDI said to make sure the person selling a policy is licensed in Texas. Verify the insurance company itself is legitimate. Consumers can call the TDI Help Line at 800-252-3439 to ask.

Consumers can also report suspected fraud to the help line.

The TDI said consumers shouldn’t pay premiums in cash or through a third-party payment app. Real insurance companies may offer online payment, but it’s through their official website or app. The TDI said scammers often rely on outside payment platforms.

Nguyen points to another red flag: anyone offering insurance with few questions asked.

“These scammers are probably not asking all the detailed questions or the in-depth questions that we would need to issue a legitimate policy,” Nguyen said.

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