Detroit Woman Sells Over 300 Fraudulent Auto Insurance Policies
When purchasing auto insurance, the last thing most people think about is the possibility of their policy being fraudulent. But in actuality, fraudulent policies are sold all the time to honest, unsuspecting individuals.
So how can you avoid becoming the victim of a car insurance scam that could cost you money and leave you at risk of driving uninsured? By recognizing the signs before signing on the dotted line, you can easily avoid this trap.
Woman Charged after Selling Fraudulent Auto Insurance Policies
After selling more than 300 false auto insurance policies to drivers in Detroit, 40-year-old Timmica Morton faced felony charges on Tuesday.
The Wayne State University (WSU) employee spent months encouraging individuals to purchase Ameriprise auto insurance policies by offering them a small down payment and low monthly payments. To sell the fraudulent policies, Morton used WSU computers to access insurance policy applications.
She was able to generate business through word-of-mouth and emails.
After securing cash deposits from her victims, she completed their forms and added her own false banking information then sent the policies to the company. She allegedly collected fees ranging from $30 to $300 from the buyers, according to Wayne County police.
From May to July of this year, Ameriprise officials noticed a spike in new policies with false banking information and launched an investigation. They learned Morton had victimized drivers from numerous cities in Wayne County.
Morton was arraigned this week on four felony charges. In addition to insurance fraud, she was charged with using a computer to commit a crime and possession of counterfeit insurance policies. She is currently being held in the county jail on a $50,000 bond.
Avoid Becoming a Victim of a Car Insurance Scam
There is nothing more disappointing than spending your hard-earned money for much-needed auto insurance, only to realize you have become the victim of a car insurance scam. So how can you avoid falling into this trap?
Donâ€™t Respond to Agents Looking for Customers
If someone approaches you and encourages you to purchase auto insurance, this is a red flag. While insurance companies love securing new business, and may even send information in the mail to lure customers, agents usually donâ€™t approach people in personal emails or through a friend of a friend to get business. In other words, beware of lone â€œagentsâ€ looking for customers.
If you receive solicitations via email or snail mail from an insurance company and you find yourself interested in the product or service, call the company first to ensure the promotion and agent are real. Donâ€™t use the phone number listed in the documentation. Instead, find a legitimate number online or in your telephone book then call and confirm before making a move.
Conduct Your Own Coverage Searches
Rather than wait for an agent or company to approach you about auto insurance, conduct your own searches. Whether youâ€™re calling companies directly or shopping for quotes online, taking this step can help you feel comfortable that youâ€™re pursuit for coverage is legitimate.
There’s no doubt that individuals looking to scam victims can be clever. Always being one step ahead of them can ensure you never become the victim of a car insurance scam.