Scams to look out for in a car insurance

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July 12, 2020

Many people get caught up in car insurance frauds. If you have gotten a phone call from someone claiming that you owe money or your insurance is voided, do not believe it. The call is not legitimate.

There are some ways in which you can avoid auto insurance scams. Always check the fine print on the policies you are interested in before signing on the dotted line. It is wise to read over any contract you sign, especially if you are buying auto insurance from an online company.

Common car insurance frauds include misrepresenting age on your policy. In many states, the minimum age is 21, so this could be a legal way for the insurance company to inflate your premiums to make a profit. Also, if you have multiple cars on your policy, then you should inquire as to whether they will be included in the new age limit, and if so, how much they will cost you.

Another common type of car insurance fraud is a company that claims that their service will help you if you have made a claim against your policy. This may work in some situations but there are also companies that will simply not pay your claims because they feel that you are at fault.

Keep in mind that insurance companies have no regard for your personal information and will not make you fill out a credit application. As such, it is critical that you take the time to do your own research and make sure that you are receiving the best coverage for your needs. For example, you may be a woman who have never filed a claim on her car insurance policy, but a male driver may have caused a major accident on your car.

To avoid auto insurance scams, there are several resources available to you. These may include using the Internet, asking a friend to recommend a reputable insurance agent, going to your local Better Business Bureau and using an auto insurance fraud watchdog website.

Even if you have received a refund from a car insurance company because of a fraudulent claim, do not let the information be used as the basis for your next policy. In most states, it is illegal to use a refund as collateral for an insurance policy and you are not legally allowed to sell your policy through the same avenue.

It is not possible to completely avoid being a victim of a car-insurance scam. However, there are steps you can take to help protect yourself. You can avoid the common ones by doing your homework, being careful about whom you give personal information to, and making sure that your auto insurance provider is licensed and insured.

There are other ways to protect yourself as well, such as keeping your insurance policy current, shopping around when searching for a new coverage with the help of sites like Money Expert car insurance quotes, and paying attention to the fine prints of any contract you sign. While there may be times when you need to pay a higher premium, the key is to stay alert to all of the pitfalls that could cause you to fall prey to a car-insurance scam.