Steering clear of fraudulent auto insurance companies


In today’s market, you are faced with a lot of choices in who you chose to be your auto insurance provider. There are a lot of quality and reputable providers out there, but hiding amongst them are ones that are fake or unreliable and will end up causing you a lot of grief and money. So how do you find a company you can trust to purchase your auto insurance premiums from? Well, here is some information for you to help guide you to finding one.

The first thing you should do when looking into an auto insurance provider is to check to see that they are a licensed provider in your state. Governments are responsible for monitoring and policing these insurance companies to make sure they are not fraudulent and are practicing good business ethics.

If the company you are looking into is not licensed by your state, this is the biggest warning sign of all, so stay clear. They may have cheap prices and flashy deals to draw you in, but chances are they are fraudulent, if they aren’t, then why haven’t they been licensed by the state? Theres simply no good reason not to be.

Another very important thing to watch for is whether or not the company can legally register you with the local insurance and enforcement agencies. If they can’t you risk being counted as driving without proper insurance which will result in penalties and fees with the DMV. Any reputable company will do this immediately for you and assist in you any paperwork required. So, if the company you are considering cannot or does not do this for you, walk away. This is a very red flag or warning.

If you are already with an auto insurance provider, you may be wondering if they are committing fraud against you. You may have been in an accident and filed your claim, but are not hearing anything back from the company about reimbursement.

A reputable auto insurance provider must acknowledge your claim within a set amount of time; this is your right as an auto insurance customer. Within a set amount of time they must give you an adjuster. The adjustor must investigate your claim properly and quickly, they cannot refuse your claim unless they have a legal justifiable reason to do so. They cannot just dismiss your claim.

If you feel your claim is not being handled correctly, you have the right to speak about your claim with someone higher up on the food chain, they cannot deny you this access.

If you have been denied any of your rights, such as those above, after filing a claim with your auto insurance provider, you have the right to take your grievance up with the insurance regulatory board in your state. They will investigate your provider to insure they are living up to the proper business ethnics and not being fraudulent.
If you have encountered any of these red flags that I have listed, or anything else that you feel doesn’t sit right with you, then chances are the auto insurance provider is fraudulent and you should steer clear of them and find a more reputable dealer.

Try going online and researching companies that have a better standing, check out customer reviews and ask around for others experiences with them. Most of all, watch for these red flags.