This Alabama man lost his $25K Jeep Wrangler in Marketplace scam — even in ‘public area with cameras around.’ And Allstate denied his coverage. How to avoid a similar nightmare

Allstate wrote in its letter that Sharp's policy excluded "loss due to conversion or embezzlement by any person who has the vehicle due to any rental, lease, lien or sales agreement."

That left Sharp on the hook for the Jeep Wrangler’s loan payments that he no longer has. "I have three payments left and will have the title in hand in March. I still own the vehicle even though I don't have it," Sharp shared.

How sellers can protect themselves from being scammed

Selling a vehicle privately can be done safely if you take the right precautions. Here are some red flags you need to be aware of when selling your used vehicle:

• Never accept an overpayment: This is when the seller gives you a check for more than the vehicle costs and asks you to return the difference. This is a common scam tactic where the "buyer" gives a fake payment and then takes off with the cash you give them.
• Meet buyers in a public place: Just like Sharp, be sure to connect with buyers only where cameras are more likely to catch potential scammers digitally. Law enforcement also suggests meeting at a police station, where officers can run the ID and tag number of the vehicle the buyer is driving to ensure they're legitimate. Many stations have a SafeTrade area where you can meet to buy or exchange goods. Some stations require you to make an appointment, but many make their lobby or another public area available.
• Verify the VIN: Before finalizing the sale, ask law enforcement to help verify the vehicle identification number and license plate of the buyer’s vehicle. This can confirm that the buyer isn’t arriving in a stolen car, as was the case in Sharp’s incident.
• Verify the payment method: While cashier's checks are generally safe, they are not foolproof. If a buyer offers to pay with a cashier's check, meet them at the issuing bank to verify its authenticity. Wire transfers or in-person cash transactions are safer than most other payment methods. Never accept cash app payments or checks, as they can be clawed back.
• Trust your gut: If something feels off during the transaction — whether it’s the buyer’s behavior, the payment method or anything else — don’t go through with the sale. It’s better to lose a buyer than to lose your vehicle and your money.

Sharp said he is still angry with Allstate for refusing to pay for his losses and has filed a civil suit against the insurance company. But his family’s story has a happy ending: Someone who heard about Sharp's woes has offered to gift his family a vehicle.