Utah Insurance Regulators Warn of Fake Car Insurance Policies Sold on WhatsApp

UT Insurance News

Published April 17th, 2025

Detected March 22nd, 2026

Summary

Utah's Department of Insurance has issued a warning regarding scammers using WhatsApp to sell fake car insurance policies. Victims are provided with forged proof of insurance, leading to potential consequences such as revoked registration, impounded vehicles, and significant financial liability in case of an accident. The scam appears to be targeting the Hispanic community.

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What changed

Utah's Department of Insurance has alerted consumers to a scam involving fake car insurance policies being sold via WhatsApp. Scammers are forging proof of insurance and using the names of legitimate local agents to deceive victims. This notice highlights the risks, including potential vehicle registration revocation, impoundment, and severe financial penalties if an accident occurs without valid coverage. The department notes that the scam appears to be disproportionately affecting the Hispanic community.

Consumers seeking car insurance, particularly those in Utah, should exercise extreme caution and verify policy legitimacy directly with insurers or licensed agents, avoiding communication channels like WhatsApp for policy purchases. Failure to secure valid insurance can lead to severe legal and financial repercussions. The warning serves as a critical alert for individuals looking to save on rising insurance costs, emphasizing that unverified policies offer no protection and can result in substantial losses.

What to do next

Verify all auto insurance policy details directly with the insurer or a licensed agent.
Do not purchase auto insurance through messaging apps like WhatsApp.
Report suspicious insurance solicitations to the Utah Insurance Department.

Penalties

Revoked registration, impounded car, liability for tens of thousands of dollars for property damage and injuries.

Source document (simplified)

GET GEPHARDT

Watch where you buy car insurance: Regulators warn Utahns are getting ripped off with fake policies

Apr 17, 2025, 10:31 PM | Updated: Apr 21, 2025, 6:04 pm

BY MATT GEPHARDT

KSLTV.com

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, the on-again and off-again tariffs promising to raise prices on certain cars and parts being imported into the United States which in turn will make it more expensive to get drivers back on the road after a wreck.

Though, 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.

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