Avoid Phony Insurance Scams
Are you searching for that perfect insurance plan at a low rate? During your search you’re more than likely going to come across an insurance scam or two. By offering ridiculously low rates and making outrageous promises, many fraudulent insurance companies are able to lure customers into submitting their personal information. These phony insurance companies then steal the victim’s identity, charge them without providing any services, or use their credit card information. Victims have lost thousands of dollars to insurance scammers so be on the look out for these warning signs.
What to Watch for
- The best way to protect yourself is to verify that the company you’re applying with is actually legitimate. Call your local department of insurance to make sure the company and insurance agent is valid.
- If you’re applying for insurance online, make sure the company has a physical address and a working telephone number. You should be able to contact the company and speak to a representative somehow besides email.
- Research a company if it has a very similar name to another well known insurance provider. Many phony insurance companies take names that appear to be the same as a legitimate company in order to scam people.
- One of the popular ways for fake insurance companies to lure people in is by advertising amazing discounts or prices that last for a limited time. These discount plans are often just a ruse to steal your money or information.
- When you get a quote from an insurance provider, especially online, check back a couple days later and make sure you get a similar quote. If the company provides you with very different quotes, it may just be spouting out random figures in hopes of getting you to send your information.
- Be wary of any company that claims they will accept all applicants or that doesn’t ask any questions about your current health status. A legitimate company won’t hand out insurance to just anyone.