How to avoid auto insurance scams


There are several types of auto insurance scams these days. With the advent of the internet, it has made it easier for people to run large scale scams without fear of reprisal. And hence we will be dealing with insurer scams in this particular article. We will also deal with a little about referral scams later on in the article.

We shall discuss the basic things that you must avoid or look out for. Never entertain door to door sales persons. They may not only be out to swindle you into signing up for a nonexistent insurance company, they may also be a potential physical threat to you and your family.

Always be wary about auto insurance policies with premiums that are way lower than the closest competition. It could be an outright fraud or a legitimate company which is trying to lure you with low prices which do not cover everything. There may be a lot of exclusions that you will only learn about later in your policy coverage tenure.

When you have finalized on a certain agent or auto insurance company, you must contact your state department and verify whether the said company is a legitimate one. There are a lot of sham overseas corporations which have fake virtual offices in the country. Any information that you can provide about such entities will be very helpful to the federal agencies which are working against them.

You can check the reputation of the company by checking the ratings at the better business bureau. This way you will have an idea as to what the company really is in comparison to what it claims.

Double check the bill to find hidden free services. Many insurance companies claim to offer a wide range of free services but will actually be charging you for it in the bill. Hence it is important to ask for a breakdown of the bill in order to know what you are paying for.

Almost all insurance companies will refer certain repair shops or agencies. Try to find out whether they have invested in the said repair shop or if they have any other interest in the well being of the establishment. In most cases, an insurance company will recommend a shop whose owner comes to the office to buy them lunch every weekend. This is not to say that the repair shop may be bad, but the reason for the referral is not based on getting you the most efficient service shop. If you do get such referrals, politely refuse or take it up only after thoroughly testing the service centre.

Keep your insurance policy number safe. Protect it like you would protect any other important number like social security number, driving license number, or bank account number. This insurance policy number can also be used by fraudsters to rob you of your identity. Identity thefts are a major problem in this country largely due to the advent of internet and consequently spam mails. Always question the authority of a person who wants your personal details. Do not volunteer such information without due reason. And try to avoid giving out such information on the internet. A written and hand delivered package to the destination is the best means to convey such material.