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TAYLORSVILLE — Utahns have been ripped off by an out-of-state insurance agent who, state officials say, was not an insurance agent at all.
With car insurance rates spiking, state officials say it has created an opportunity to rip off people who are bargain hunting. Officials have busted a man in Texas who, investigators say, was doing just that.
Carlos Garcia Gonzalez has been arrested in Texas, accused of ripping off drivers in Utah by using a scam the KSL Investigators have reported before: selling insurance that does not actually exist.
The scam is especially timely as Utahns continue to deal with soaring auto insurance rates and drivers look to save money. According to WalletHub, the average Utah driver pays $2,134 per year for full coverage.
Buying a bogus insurance policy can mean big trouble for drivers.
If there is a crash, the driver could owe tens of thousands of dollars for property damage and injuries. Even without a crash, if an officer runs the plates, it can mean a revoked registration or an impounded car, Utah Insurance Commissioner Jon Pike said.
"Well, the law says that auto owners and drivers are required to have insurance," Pike said.
Insurance officials say that before buying insurance, drivers should verify that both the company and the agent are licensed with the state insurance department. Real coverage will withstand basic checks.
The man arrested in Texas for allegedly selling fake policies to Utahns is expected to be extradited back to Utah to face six felony charges tied to the alleged scheme.
