As the demand for car insurance has increased over the years, the fraud related to it has also spiked. Many car owners in India face scams while buying or renewing their policy, often without even realizing it. Fake policies, false promises of heavy discounts, and unauthorized agents are some common examples of car insurance fraud.
No need to worry! Every problem comes with a solution. To avoid car insurance fraud, you need to be attentive and cautious. These precautions will help you to stay alert and protect your money.Â
In this blog, we will explain simple and practical ways to avoid car insurance fraud in IndiaÂ
Tips to Avoid Car Insurance Fraud in 2026
Car insurance fraud is becoming more common, especially with online purchases and digital payments. You should stay alert and informed to protect yourself financially.Â
Here are some simple tips to avoid car insurance fraud in 2026:
Buy from a Trusted Source
Buy car insurance only from the official website of the insurance company or a registered agent. Avoid unknown calls or random links offering huge discounts.
Verify the Policy Details
After buying car insurance, check your policy number, coverage details, and personal information carefully. You can also verify the policy on the insurer’s official website.
Avoid Unrealistic Discounts
If someone offers a very low car insurance premium compared to the market price, be cautious. Fraudsters often use heavy discounts to attract customers.
Do Not Share Details
Never share OTPs, card details, or bank information with unknown callers. Insurance companies do not ask for sensitive details over random calls.
Cross-Check Agent’s Credentials
If you are buying through an agent, ask for their license or registration details. A genuine agent will not hesitate to provide proof.
Pay Through Secure Channels
Always pay the car insurance premium directly to the insurance company’s official payment gateway. Avoid transferring money to personal bank accounts.
Keep Documents Safe
Save your policy documents, payment receipts, and emails. These records can help you in case of any dispute.
Check the Company’s Name
Fraudsters sometimes use names that sound similar to well-known insurers. Always check the exact company name before you buy car insurance.
Confirm the Car Insurance
After payment, verify your car insurance policy through the insurer’s website or the VAHAN portal. If the policy is genuine, it will be updated in official records.
Avoid Cash Payments
Do not pay the car insurance premium in cash. Always use secure online payment methods or official payment links.
Be Careful Reminder Calls
Many fraudsters call during renewal time and claim your policy is about to expire. Before making payment, confirm the details with your insurance company directly.
Check Email and SMS Carefully
Fake emails may look real. Always check the sender’s email address. Official emails come from the company’s verified domain.
Never Sign Blank Forms
Never sign blank proposal forms or documents. Make sure all details are filled correctly before signing.
Review Add-Ons
Some fraudsters promise extra add-ons but issue a basic policy instead. Always check whether the add-ons you selected are clearly mentioned in the policy document.
Keep Track of Your Policy Expiry Date
If you know your renewal date, you are less likely to panic when someone calls. This reduces the chances of fraud during renewal.
Report Suspicious Activity Immediately
If you suspect fraud, contact the insurance company immediately. You can also report the issue to IRDAI or local authorities.
Conclusion
To avoid car insurance fraud in India, you have to be attentive and cautious at every step of buying your policy. A small mistake or careless decision can lead to financial loss and unnecessary stress. Always verify the insurer, check policy details properly, and make payments only through secure and official channels.
If you take a few extra minutes to cross-check information, then you can easily protect your money and ensure the reliability of your car insurance. Stay alert to keep yourself safe from fraud and enjoy complete peace of mind.
FAQs
What is car insurance fraud?
Car insurance fraud happens when someone cheats you by selling a fake policy or giving false promises about coverage or discounts.
How can I check if my car insurance policy is real?
You can verify your policy number on the insurance company’s official website or through the VAHAN portal. You can also call the insurer’s customer care to confirm.
Is it safe to buy car insurance online?
Yes, it is safe if you buy from the official website of the insurance company or a trusted platform. Avoid unknown links or calls offering very cheap plans.
Why do fraudsters offer very low car insurance premiums?
They use heavy discounts to attract people quickly. Very low prices can sometimes be a warning sign of fraud.
Should I share my OTP while buying car insurance?
No, you should never share your OTP, bank details, or card information with anyone on a call. Genuine companies do not ask for such details randomly.