Most insurance agents are trustworthy — but a few bad actors can cost you big. In 2023, the District of Columbia saw a 17% increase in reported insurance fraud cases, according to the National Association of Insurance Commissioners (NAIC). Protect yourself by knowing the red flags.
Common Scams to Watch For
- Stolen Premiums: The agent pockets your payment instead of sending it to the insurer. You’re left with no coverage.
- Fake Insurance: You’re sold a bogus policy from a fake company. Claims? Denied.
- Unneeded Coverage: You’re pushed to buy expensive or duplicate policies you don’t need.
- Churning: You're convinced to cancel a good policy to buy a “better” one — just so the agent earns a commission.
- Sliding: Extra coverage is added without your consent, raising your premium.
- Twisting: Facts are distorted to get you to switch policies — even if it puts your coverage at risk.
How to Protect Yourself
- Verify the agent and insurer are licensed in DC: Check here
- Pay smart: Use check, credit card or money order — never cash. Pay the insurance company directly.
- Get receipts and review documents before paying.
- Take your time — don’t be rushed into a decision.
- Follow up: If you don’t receive your policy within 60 days, contact the insurance company directly.
- Ask questions and get clear answers in plain language.
- Be cautious online: Scammers can forge your e-signature or enroll you in policies you didn’t agree to.
Report Suspected Fraud
If you think you’ve been scammed, report it to:
- DISB Enforcement and Consumer Protection Division: 202.727.8000
- FBI Internet Crime Complaint Center: IC3.gov or call 202.278.2000
- Federal Trade Commission: [email protected]