I was scammed by a fake insurance company or fake insurance agent — what do I do?
Report to your state Department of Insurance immediately. State regulators actively pursue unlicensed insurers. Dispute premium payments with your card issuer and get legitimate coverage right away.
Last reviewed: 10 June 2026
Explanation
Insurance fraud involving fake companies or unlicensed agents is regulated at the state level. If you purchased insurance (health, auto, home, or life) from an agent or company that is not licensed in your state, your coverage may be void — meaning you could face significant liability in the event of a claim.
Contact your state's Department of Insurance as the first priority. State insurance regulators maintain databases of licensed insurers and agents, can verify whether your policy is legitimate, investigate fraud complaints, and can coordinate restitution proceedings. Insurance fraud carries significant criminal penalties.
If you paid premiums by credit card, file a chargeback for misrepresentation — you paid for insurance coverage that was never real. If you paid by check or bank transfer, report to your bank's fraud team and file with the FTC at ReportFraud.ftc.gov.
If you had claims denied because the insurer was fake, document all claim-related losses. State guaranty funds cover certain losses when a licensed insurer becomes insolvent, but fake unlicensed insurers may not be covered. Consult a licensed insurance attorney to understand your options.
Common red flags
- Insurance premium significantly cheaper than every other quote you received
- Agent cannot provide the insurer's state license number when asked
- No physical address or license listed on the insurance company's website
- Policy documents have spelling errors or unusual formatting
- Payment goes to a personal bank account rather than the insurance company directly
What to do now
- Report to your state Department of Insurance using their fraud reporting portal
- Verify whether your policy is legitimate through the state regulator's database
- File a credit card chargeback for misrepresentation if paid by card
- Report to the FTC at ReportFraud.ftc.gov
- Obtain legitimate replacement insurance immediately if your coverage is void
Frequently asked questions
How do I verify if an insurance company is licensed in my state?
Every state Department of Insurance maintains an online database of licensed insurers and agents. Search by the company name or agent license number. You can also call your state's DOI directly.
My car was in an accident and the insurer says my policy is not real — what happens?
You may be personally liable for the accident damages. Consult an attorney immediately. Report to your state DOI. If you were defrauded in good faith, law enforcement action against the scammer may eventually provide some restitution.