California Auto Insurance – Could New Fraud Arrests Lead to Higher Premiums?

California car drivers beware – authorities have recently arrested Leandra Delgadillo of Canyon County for automobile insurance fraud according to the Insurance Journal. Leandra, 32, has allegedly been providing fake auto insurance certificates to car dealers from March 2007 through May 2008, collecting the premiums for herself as she is not a licensed insurance broker. If convicted she could face up to two years in jail and is currently being held on $20,000 bail.

Though the California Department of Insurance Investigators is still investigating the case they report the she has collected over $5,000 in premiums from owners of two used car dealerships in the San Fernando Valley. Delgadillo’s alleged scam was discovered when a victim sought to confirm their insurance policy with the agent listed on the certificate only to be informed that the policy did not exist. Thankfully this happened before any incident requiring a claim needed to be filed.

This can throw up some red flags for drivers in the California area and begs the question: how sure are you about your own auto insurance? Though the California Department of Insurance Investigators is keen on ensuring all providers in the state are legal and properly certified there is no way to offer a 100% guarantee that they can ensure that sort of fraud is not happening elsewhere. So how can you help protect yourself and make sure that you are properly covered when you purchase insurance for your vehicle?

Thankfully today there are a number of ways you can research this information, including using the internet to your advantage. A number of auto insurance search engines can help provide you with useful information on both legally registered companies and insurance quotes in your local area. Though it may sound bad to be suspicious of your providers additional research can never hurt.

When looking for a provider, make sure that they can cover a few of the basic needs that you have and that they are properly certified with the state. When doing your research you may even find providers some providers that can offer you better services at cheaper rates and can help you save money in both the short and long run.