How to identify fake insurance?


Editorial team Published on

You can check if an insurance policy, agent, or company is real by contacting your state's department of insurance or using tools like the NAIC Consumer Information Source to verify licensing and history.

Red Flags of Fake Insurance

  • Prices that are too low: Scammers often charge rates that are much cheaper than other companies.
  • Unusual payment methods: Fake agents ask for cash, peer-to-peer payment apps, or wire transfers instead of official company portals.
  • Hard to reach: Illegitimate sellers have no physical address, use P.O. boxes, or do not answer phone calls.
  • Missing official documents: If you do not get an ID card or policy documents within weeks of paying, it may be a scam.

How to Verify a Certificate of Insurance (COI)

  • Check the form name: Standard insurance certificates use ACORD forms (like ACORD 25) with proper logos.
  • Look for visual errors: Mismatched fonts, blurry seals, or altered expiration dates signal a fake document.
  • Call the carrier directly: Look up the official phone number of the insurance company—not the number on the document—and give them the policy number to confirm it is active.