Fake Auto Insurance Card Reports in Texas Triple Since 2023, TDI Data Shows

The Texas Department of Insurance recorded 126 fraud reports tied to fake auto insurance cards in 2025, more than triple the 38 reports it logged in 2023. Another 37 reports landed at TDI during the first quarter of 2026, putting Texas on pace to break last year's total.

NBC 5 Dallas-Fort Worth investigative reporters Diana Zoga and Robin Carter broke the numbers on April 29, 2026, after sitting with State Farm agent Ann Nguyen at her Arlington office. Nguyen said her staff fields routine calls about policies she never issued, with the fraudulent cards listing her name as the licensed agent.

The Numbers Behind the Spike

TDI's fraud-report totals have climbed in a sharp arc. The agency logged 38 fake-card reports in 2023, 126 in 2025, and 37 in just the first three months of 2026, according to data Mistie Hinote of TDI shared with NBC 5 Responds. That arc represents a 232% jump in two years and a quarterly run rate that already approaches the full 2024 totals.

Hinote said the actual victim count is likely far higher because most consumers do not realize their policy is counterfeit until a crash or traffic stop forces them into the system. By that point, the seller has gone dark and the cash payment is unrecoverable.

How the Scam Works

Nguyen described a typical case in her Arlington office. A consumer arrives with a digital insurance card showing a State Farm logo, Nguyen's name as the agent, and a policy number that returns nothing in the carrier's database. The formatting is slightly off, the policy does not exist on State Farm's books, and the buyer paid cash to a third party who advertised through a friend, a Facebook group, or a Spanish-language community page.

One victim, Raul Manzano, paid $1,500 cash for what he was told was six months of Texas auto liability coverage. He found out the document was counterfeit only after Minnesota police pulled him over and charged him with possession of an altered insurance ID card. Lisa Hartman, the Minnesota advocate helping him respond to the court summons, told NBC 5 Responds that the seller has gone unreachable and the money is gone.

Manzano did not have a U.S. driver's license and shopped through word-of-mouth, paying someone who knew someone selling policies. He never noticed that the proof-of-insurance document listed Texas liability coverage rather than Minnesota, where he was driving.

Red Flags Texas Drivers Should Watch For

Hinote and Nguyen flagged several warning signs that separate a legitimate quote from a counterfeit one. Cash-only payment requests rank at the top, since licensed Texas carriers run premium charges through their own portals, not through Cash App, Zelle, or in-person handoffs.

Red Flag	Why It Matters
$50 per month full coverage	Texas average is $208 to $229 per month, per Bankrate and Insurify 2026 data
Cash, Zelle, or Cash App payment	Real carriers process payments through their licensed portals, per TDI guidance
No underwriting questions	Licensed agents must collect VIN, driving history, and address before binding a policy
Pressure to buy "today"	Hinote: "Insurance companies usually don't have sales"
Agent has no Texas license number	State law requires every selling agent to be licensed by TDI
Card formatting looks off	Real Texas cards include carrier NAIC code, policy number, VIN, and effective dates

Premium ranges sourced from Bankrate's 2026 Texas average of $229 per month for full coverage and Insurify's 2026 figure of $208 per month, both based on profiles of drivers ages 30 to 50 with clean records and average credit.

How to Verify a Texas Auto Insurance Policy

Texas drivers can confirm both the agent and the carrier in under five minutes. Run both checks before sending any payment, since the policy contract on file with the insurer is what protects you in a crash, not the printed card.

What to Do If You Already Bought a Fake Policy

Move quickly if any verification step fails. Manzano's case shows how fast the consequences mount once a traffic stop or claim exposes the counterfeit, with citations, court fees, and uninsured-driver penalties that can dwarf the original cash payment.

• File a fraud report with TDI online at tdi.texas.gov/fraud or by phone at 1-800-252-3439
• Notify the carrier whose name appears on the fake card so its fraud unit can investigate
• Submit a complaint to the Texas Attorney General's consumer protection division
• Report online elements of the scam to the FBI's Internet Crime Complaint Center at IC3.gov
• Buy real coverage immediately to avoid driving uninsured under Texas Transportation Code 601, which can also trigger an SR-22 filing requirement after a citation
• Keep all texts, screenshots, payment receipts, and the fake card for the investigation

Why This Fraud Raises Premiums for Everyone

Fake-card fraud does not stay with the buyer. Hinote told NBC 5 Responds that uninsured-claim costs flow back into rate filings, lifting premiums for every legitimately covered Texas driver. Roughly 13.8% of Texas drivers are already uninsured, and counterfeit policyholders push that share even higher because their fake coverage offers no recovery to anyone they hit.

"That's money out of the insurance company's pocket, and they're going to pass that on to policyholders with increased premiums. So we're all seeing the effect of insurance fraud through our premiums," Hinote said.

Texas already ranks among the more expensive states for auto coverage, with Insurify pegging the 2026 statewide average at $208 per month for full coverage. Carriers cite fraud, severe weather losses, and rising litigation costs that add about $1,724 per Texas household as the top drivers behind recent rate filings. Texas residents can compare verified carrier rates and city-level premium data on our Texas car insurance page before requesting a quote from any agent.

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