Don't Get Duped Into Buying Fake Car Insurance

July 31, 2026

A cheap auto insurance quote can look like a lifeline, especially for a driver who needs coverage quickly or has watched premiums climb. But before sending money to someone advertising affordability, make sure there is an actual policy behind that offer.

The Texas Department of Insurance recently warned that reports of fake auto policies and suspected agent fraud are increasing. Many times it's someone posing as an insurance agent, collecting the customer’s money, and sending over legitimate-looking insurance cards and documents. But the "agent" never takes out a policy from an insurance company.

And the customer may not realize anything is wrong until a police officer checks or you have an accident.

An Insurance Card Does Not Guarantee Coverage

Fake insurance documents can look convincing. They'll have everything: the driver’s name, vehicle information, a policy number, an effective date, and the logo of a real insurance company. Unfortunately, none of that proves the company actually issued the policy.

TDI says fraudsters frequently find customers through social media, where unusually low prices can attract people who need affordable coverage. Some scammers pose as independent agents and conduct the entire transaction through messages. Others insist that payment be sent directly to an individual through a mobile payment app. And once the money is sent, the customer receives a card but no real protection.

That can become far more expensive than the stolen premium. Texas drivers generally meet the state’s financial-responsibility requirement by carrying liability insurance. Without an real policy, someone who causes an accident could be liable for the other party’s vehicle, medical bills, and other damages.

Plus, merely operating without insurance can carry a fine of up to $350 for a first offense. Additional offenses can lead to fines of up to $1,000 and a suspended driver’s license.

Pay Attention to How the Policy Is Being Sold

A low quote is not automatically fraudulent. Legitimate insurance companies sell policies online, and different insurers can quote very different prices for the same driver. The sales process itself, however, may provide better clues.

Be cautious when someone contacts you unexpectedly, offers a price far below every other quote, or says you must pay immediately to keep the deal. Unsolicited calls, high-pressure sales tactics, requests for cash, and unusually low prices are definitely warning signs.

Payment instructions also matter. TDI recommends paying the insurance company directly rather than sending money to an agent or individual. Some insurers have their own apps and online payment systems, but some consumers have reported paying through unrelated third-party apps for coverage they never received. Many also had difficulty recovering the money.

Check the Agent and the Policy

Before buying, confirm that both the seller and the insurance company are authorized to operate in Texas. TDI provides an online agent lookup that allows consumers to search by name or license number. Its Help Line can also tell you whether an agent or company is licensed, whether complaints have been filed, and whether there has been any disciplinary action.

You can also contact the insurance company directly after purchasing and ask whether it has an active policy in your name for the correct vehicle. It's usually good to find the company’s contact information independently rather than relying on the phone number supplied by the seller. In fact, TDI specifically recommends confirming coverage with the insurer after purchasing a policy.

Save the application, receipts, emails, text messages, insurance cards, and policy documents. Those records may help investigators establish what happened if the policy turns out to be fake.

Find Out Before You Need to File a Claim

Don't wait until an accident to verify that your insurance is real. If the insurance carrier cannot confirm the policy, you should avoid driving until you know you have a valid policy in place. Additionally, contact the bank or payment service involved in the transaction and report the suspected scam to TDI.

Saving money on auto insurance matters. But before trusting an offer that seems unusually cheap, make sure you are buying more than a convincing-looking card.

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Renters Insurance Won't Cover Flood: You Need a Flood Policy

June 30, 2026

Renters insurance is often something people buy once, file away, and stop thinking about altogether. And for many renters, that makes sense. It is usually affordable, landlords often require it, and the basic idea seems simple: if anything happens to your belongings, insurance helps pay to replace them. But there is one major exception you should know about before the next heavy storm. Renters Insurance Usually Does Not Cover Flood Damage Most renters insurance policies do not cover flood damage. That can be a surprise, especially because renters insurance may cover other kinds of water damage, such as damage from a burst pipe or certain sudden plumbing problems. The Texas Department of Insurance says renters policies commonly cover losses from fire, smoke, theft, vandalism, and certain types of water damage, but not those caused by floods . If water enters your home from the outside, because of rising water, overflowing rivers or creeks, flash flooding, or storm runoff, a regular renters policy usually will not pay to replace any of your stuff. Why This Matters in San Marcos Flooding is not an abstract risk in San Marcos. The city itself identifies the San Marcos River, the Blanco River, and Purgatory Creek as the city’s three primary sources of flooding, warning that it can happen in these areas with little to no warning. That means renters may not have much time to react once heavy rain starts, a creek rises, or a flash flood warning is issued. Floodwater can affect streets, apartments, homes, parking lots, and your belongings pretty quickly. Your Landlord’s Insurance Is Not There to Protect Your Stuff Some renters assume the landlord’s insurance will step in at claim time, but in most cases, that's not how it works. A landlord’s policy is generally there to protect the building, not the tenant’s personal belongings. TDI explains that a landlord’s insurance will not cover a renter’s personal items , which is why renters insurance exists in the first place. So if floodwater damages the apartment structure, flooring, walls, or major building systems, that may be the property owner’s issue. But the renter’s couch, bed, laptop, TV, clothes, books, and other belongings are usually the renter’s responsibility. Do Not Wait Until a Storm Is Coming Timing matters, because a flood insurance policy usually cannot be started immediately. Most flood policies have a 30-day waiting period before coverage takes effect. That means renters generally cannot wait until a storm is on the radar, a creek is rising, or a flash flood warning is issued and expect to buy coverage in time. For renters in San Marcos and across Central Texas, this is worth reviewing before storm season, before moving into a new apartment, or before renewing a lease. It is especially important for renters living near creeks, rivers, low-water crossings, ground-floor units, older drainage areas, or parts of town that have flooded before. Know What Your Policy Does and Does Not Cover A basic renters policy is valuable, protecting your stuff against theft, fire, smoke, vandalism, and the like. But flood is a different story entirely. So if you rent in San Marcos or anywhere in Central Texas, take a few minutes to review your renters policy with your agent and ask some direct questions, like: Does this cover flood damage? What kinds of water damage are included? Is separate flood coverage available? Those are better questions to ask before the storm hits, rather than after your furniture is sitting on the curb.