Estimated read time: 2-3 minutes
SALT LAKE CITY — Utah's Department of Insurance has issued a warning for anyone looking to buy coverage for their car: Scammers are using the messaging app WhatsApp to sell fake auto policies.
Victims get a forged proof of insurance, leading them to think they are covered — but they're not. To make the ruse more believable, scammers use the names of real, local, but unwitting agents when they contact their victims.
Looking to save
The scam is especially timely as Utah drivers, who've had to deal with continuously rising insurance rates, are looking to save.
According to Bankrate, the average driver in Utah now pays a whopping $2,134 per year for full coverage.
Several factors behind the spike include the post-pandemic shift to more drivers on the road and continuing parts shortages. Also at play are the on-again and off-again tariffs, which promise to raise prices on certain cars and parts imported into the United States, which in turn will make it more expensive to get drivers back on the road after a wreck.
However, Brent Thurman, of Keystone Insurance, said he's hopeful rates will level off soon.
"A couple of our carriers have actually come and said, 'Hey, we're either projecting modest or 0% rate increase for the coming year,'" Thurman said. "So, I think we are getting to a point where they're kind of settling in a little bit."
Fake insurance fallout
Meanwhile, if you bought your insurance on WhatsApp, you likely don't have insurance at all. That could mean big trouble, such as a revoked registration or an impounded car. And get into a crash, you could find yourself owing tens of thousands of dollars for property damage and injuries.
The scam seems largely targeted at the Hispanic community, the Utah Insurance Department said.
