Utahns are falling victim to 2 different auto insurance scams
Jul 22, 2025, 3:00 PM
After you've had an accident is not the time to find out you've fallen victim to auto insurance scams. (Kaysville Fire Department)
(Kaysville Fire Department)
SALT LAKE CITY — Utah fraud officials are warning Utahns about two insurance scams making the rounds.
One of the scams is being run out of Venezuela. The other is out of Texas, where an unlicensed agent is selling real policies but using false information to lower the cost, according to Armand Glick, director of the Utah Fraud Insurance Division.
“Hundreds and hundreds of people have been victimized by these two schemes and the best way to approach it is just to try to get the word out,” Glick said.
Venezuela scheme
Glick’s agency first heard of the Venezuela scheme from Insure-Right, a contractor.
“They receive insurance policies from auto carriers in the state, then they compare that against the registered vehicles in the state and identify uninsured vehicles.”
The state has identified hundreds of people who believe their vehicles are insured. But their documents are fake.
“As we begin to look into this, we…traced [the] unknown suspects back to Venezuela via their IP addresses.”
Glick said the scam involves an actual insurance agent in Utah.
“[The agent] has nothing to do with these fake policies, but it certainly caused a lot of damage to his company, and a lot of people [are] calling him upset that their policies are not real, thinking that he was the agent that issued them,” Click said.
This scheme is being spread by word of mouth, by people who’ve discovered the so-called lower prices and are telling their friends and family. Glick said that in many cases, the victims are Hispanic.
The danger for those who believe they are insured is twofold. Their vehicle is not insured, “so if they get in an accident…they’re going to be financially liable,” Glick said.
And if they are pulled over by local law enforcement, “when the officers run their vehicle for insurance, it’s coming back as being uninsured even though they have those fake documents.”
The Texas/Utah scheme
The other insurance scam involves fake policies and a man in Texas who has ties to Utah.
“We have a unlicensed agent who … is also using WhatsApp and he is marketing real insurance policies. However, he’s not licensed to do so,” Glick said. Instead, he takes $80 to $200 as his commission.
Then, the scammer goes online and buys an insurance policy for the victim using fake or incorrect information to obtain a policy quote.
“These policies have been artificially reduced in premium by lying about where these vehicles reside, who’s driving those vehicles or the vehicles themselves.”
“If you’re living in Salt Lake and rates may be higher in Salt Lake … he’ll put your home residence as Moab because it artificially reduces the cost of that insurance,” Glick said.
How to protect yourself from insurance scams
Search for licensed agents on the State of Utah’s Insurance Department website, where you can verify that the agent is licensed. And, Glick said it’s important not to contact someone based on a word-of-mouth recommendation.
“Look it up on your own and find it from a reputable source,” Glick said. “The easiest way is just go into a physical location where an insurance agency exists and purchase the policy directly from them.”
If you are concerned about one of your policies, Glick urges you to call your insurance company directly to verify whether your policy is valid.
“You’ll either discover that you don’t really have a policy, which would be horrible, but it gives you an opportunity to buy a real policy so that you can avoid having your car impounded and suffer a catastrophic loss if you’re in an accident.”
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