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 a scam or two. By offering ridiculously low rates and making outrageous promises, many fraudulent providers are able to lure customers into submitting their personal information. These phony companies then steal the victim’s identity, charge them without providing any services, or use their credit card information. Victims have lost an endless amount of dollars to 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 to make sure the company and agent is valid.
  • If you’re applying online, make sure the carrier has a physical address and a working telephone number. You should be able to contact the provider and speak to a representative somehow besides email.
  • Research a brand if it has a very similar name to another well known provider. Many phony insurance brands take names that appear to be the same as a legitimate company in order to scam people.
  • One of the popular ways for fake brands 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 a provider, especially online, check back a couple days later and make sure you get a similar quote. If the carrier 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 brand that claims they will accept all applicants or that doesn’t ask any questions about your current health status. A legitimate brand won’t hand out coverage to just anyone.

Additional Resources