Making or using fake insurance cards is illegal under state law and punishable by jail time, community service or fines, according to the New Jersey Department of Law and Public Safety. Similar penalties are in place in all 50 states, confirms InsuranceQuotes.com.
As of 2015, the laws related to fake insurance cards vary from state to state. InsuranceQuotes.com gives the examples of New York state where violators are subject to arrest on the spot, Texas where they face a ticket, and West Virginia where fake insurance cards are a felony and punishable by jail time. Producing and selling cards is also a felony, as was the case with a New Jersey couple convicted in 2007 of insurance fraud.