Automobile Warranty and Insurance Scams
Introduction
If you or a family member owns a vehicle, you’ve probably received countless spam calls claiming to be about your automobile insurance or warranty. While some calls may come from legitimate companies selling insurance policies, many are from scammers posing as representatives of car dealers or insurance providers. These fraudsters often claim that your policy is about to expire or try to sell you a “special” new plan — but their goal is to steal your money and personal information.
How These Scams Work
Most automobile warranty and insurance scams begin with an automated or pre-recorded message. When you answer, the recording prompts you to press a number to speak to a “representative.” This connects you to a scammer who will pressure you for personal details such as your name, address, vehicle information, or payment details, which they later use to commit fraud.
Common Scam Tactics
- Policy Expiration Pressure: Scammers claim your insurance or warranty is about to expire, creating urgency so you act without verifying.
- Limited Time Offer: Fraudsters say you’ve won free coverage or a massive discount but request upfront fees for “tax” or “legal” purposes.
- Fake Emails: Emails warn of expiring coverage or special renewal offers, asking you to share personal information for a supposed discount.
How to Avoid Automobile Warranty and Insurance Scams
- Never rush into decisions based on pressure from unknown callers.
- Always verify the identity of the caller by contacting your insurance provider directly using official contact details.
- Be cautious of unsolicited emails or texts asking for personal or payment information.
- Know that scammers often have detailed information about your vehicle — this does not mean they are legitimate.
- Sign up for your country’s “Do Not Call” registry and report suspicious calls.
If You’ve Been Targeted
If you suspect you’ve been approached by a scammer, hang up immediately. Report the incident to your local consumer protection agency and, if applicable, to the Federal Trade Commission (FTC) or equivalent authority in your country. Monitor your bank accounts and credit report for unusual activity if you’ve shared personal or financial details.