Fake Car Insurance Cards: Risks and 3 Safer Alternatives

Whether you unknowingly bought car insurance from a bogus company, are just trying to save money, or need an insurance ID right away, driving with a fake car insurance card is illegal and risky. 

If you get into an accident without car insurance you could be on the hook to pay for damages out of your own pocket. Plus, you could face serious legal consequences since nearly every state requires car insurance.

Let’s look at budget-friendly alternatives to fake car insurance, including comparing rates from multiple companies to find the best price for the coverage you need.

What is fake car insurance?

Fake car insurance is a document, card, or electronic proof of insurance that isn’t legitimate. It’s usually the product of intentionally creating a counterfeit insurance card or being conned into purchasing coverage from a fraudulent auto insurance company. 

Both situations can lead to legal trouble because you won’t have a genuine insurance policy.

Intentionally faking car insurance

People who counterfeit car insurance coverage on purpose often take a DIY approach to create a fake auto insurance card. This can seem like a quick solution for vehicle owners who need proof of insurance in a hurry or are looking to cut costs on auto coverage.

The result of these DIY efforts is a counterfeit document that mimics real insurance, bypassing the process of shopping for and buying a policy.

Unintentionally buying fake car insurance

Falling victim to a fake auto insurance policy is a more common issue than you might realize. Insurance fraud ranks as the second most expensive form of white-collar crime in the United States, according to data from the National Insurance Crime Bureau.1

Scammers can trick you into buying coverage. They present themselves as legitimate insurance agents or companies, offering policies that appear valid. Unsuspecting customers purchase coverage, believing they’re making a smart choice, only to later discover the policy doesn’t have any real backing or validity.

Alternatives to a fake car insurance card

A fake auto insurance card is never a good idea. Fortunately, you can get affordable and quick car insurance that meets your state’s minimum requirements, and you can do so legally. 

Here’s a look at some alternatives to counterfeit documents and how much you might pay for coverage.

Pay-per-mile car insurance

If you don’t drive a lot, pay-per-mile insurance can be an affordable option. Some companies call it usage-based insurance because it uses telematics to track how you use your car.2 Your premiums depend on your driving habits, mileage, and the time of day you get behind the wheel. Some pay-per-mile insurance companies charge a base rate and a per-mile fee.

On-demand car insurance

On-demand car insurance offers temporary coverage. It lets you buy a policy for as little as three days at a time. Right now, Hugo is the only company currently offering this type of coverage. Since Hugo only sells state-minimum liability policies, you won't be able to use this type of coverage if you need full coverage or higher liability limits.

Hugo is only available in 13 states, and not every driver will be eligible for its on-demand product. But for people who do qualify, Hugo can be a great option if you need coverage fast or need to cut car insurance costs. Hugo’s website claims it takes less than six minutes to open your account and get proof of insurance. Costs are usually low for infrequent drivers. 

The company also doesn’t charge up-front fees, and you can pay as you go without a down payment.

Car-sharing services that cover your insurance

If you don’t own a car but occasionally need one, you might look at a car-sharing service like Zipcar. It’s an on-demand car service that gives you vehicle access when you need it but without the financial burden of car ownership. You can rent a vehicle for a few hours or a whole day.

Joining Zipcar costs around $9 per month. The rental fee when you need to use a car covers the cost of insurance and even includes gas. That means no stress about filling up the tank or dealing with long-term insurance or car payments.

Getaround is another option if you need a car for a short while. Like Zipcar, it has hourly and daily choices that include liability insurance. You can handle everything from your smartphone, booking the vehicle and unlocking it from the app, so there’s no waiting in line.

Consequences of fake car insurance

The danger of driving with fake car insurance isn’t just the lack of insurance protection. It also comes with legal and financial consequences. 

Driving without car insurance is a serious offense. It’s auto insurance fraud, and the law may not consider whether you knew the coverage was fake.

If you’re caught driving with fake insurance, you could face the following penalties:

• Legal consequences and fines: Fraudulent proof of coverage can lead to hefty fines, jail time, and other penalties.

• Criminal charges: Simply having fraudulent proof of coverage can be a misdemeanor. But if you created your own counterfeit insurance card, you can be charged with a felony.

• Trouble getting coverage in the future: Purchasing legitimate car insurance after getting caught with fake insurance can be difficult. Insurers may view you as high-risk and charge you higher premiums or deny you coverage outright.

• Financial liability in accidents: If you don’t have valid insurance, any property damage or injuries resulting from a car accident you cause will be your financial responsibility. This may include covering repair costs, medical expenses, and possibly legal charges in the case of a lawsuit.

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