SALT LAKE CITY – Utah’s Division of Insurance coverage has issued a warning for anybody seeking to purchase protection for his or her automobile: Scammers are utilizing the messaging app WhatsApp to promote faux auto insurance policies.
Victims get a solid proof of insurance coverage main them to suppose they’re lined – however they’re not. To make the ruse extra plausible, scammers use the names of actual, native however unwitting brokers once they contact their victims.
Trying to save
The rip-off is very well timed as Utah drivers, who’ve needed to cope with constantly rising insurance coverage charges, wish to save.
According to Bankrate, the typical driver in Utah now pays a whopping $2,134 per yr for full protection.
A number of components behind the spike embrace the post-pandemic shift to extra drivers on the street and persevering with elements shortages. Additionally at play, the on-again and off-again tariffs promising to lift costs on sure automobiles and elements being imported into america which in flip will make it dearer to get drivers again on the street after a wreck.
Although, Brent Thurman of Keystone Insurance coverage stated he’s hopeful charges will degree off quickly.
“A few our carriers have really come and stated, ‘Hey, we’re both projecting modest or 0% price enhance for the approaching yr,’” Thurman stated. “So, I believe we’re getting to a degree the place they’re form of settling in just a little bit.”
Pretend insurance coverage fallout
In the meantime, should you purchased your insurance coverage on WhatsApp, you doubtless don’t have insurance coverage in any respect. That would imply huge bother, resembling a revoked registration or an impounded automobile. And get right into a crash, you might end up owing tens of hundreds of {dollars} for property harm and accidents.
The rip-off appears largely focused on the Hispanic neighborhood, the Utah Insurance coverage Division stated.
