Tips to Protect Yourself from Car Insurance Scams

Scams have unfortunately become a common occurrence in everyday life. Even when you’re shopping for more mundane things like car insurance, you’re bound to run into a few cons. Therefore, it always pays to do your own research before choosing a firm to provide you with insurance, regardless of the product you’re searching for.

How to Avoid Being Scammed?

You can stay vigilant to protect yourself against car insurance fraud in the following ways:

Be Skeptical of Unsolicited Offers

Unsolicited insurance offers, whether by phone, door-to-door salesperson, or internet ad, should be avoided. Con artists can pose as insurance agents in order to sell you a policy at below-market insurance rates and then pocket the money.

To ensure that you are dealing with a legitimate agent, go to your state’s Department of Insurance website.

Beware of Low Cost or Promotional Offers

Cheap insurance offers are almost never legitimate. Any policy with unusually low rates most likely lacks essential coverage or is invalid.

Read The Fine Print & Ask the Right Questions

Examine insurance policies, rates, and coverage thoroughly before signing any contract. This prevents an agent from sneaking coverage into your policy and alerts you to fraud if your state’s required coverage isn’t included.

Protect Your Insurance Information

Criminals can file fraudulent claims using your insurance identification and policy numbers, as well as your basic personal information. Keep this information private, and don’t share it unless you’re dealing directly with your insurer or an official claim or report. If anyone else requests specific information about your policy, proceed with caution.

Report The Scam

You can prevent further fraud by immediately reporting any suspicious activity to the police.

What Should You Do If You Become a Victim of Car Insurance Fraud?

  • Call your insurance company right away to report the incident. This will aid in thwarting the scam, preventing further fraud on your behalf, and allowing your insurer to assist in resolving the issue.
  • To report any fraud, call the National Insurance Crime Bureau at 1-800-835-6422 or fill out their online form. To help identify, detect, and prosecute insurance criminals, the NICB collaborates with insurance companies and law enforcement.
  • File a report with your local police department.
  • Inform your local FBI office. These reports are used by government agencies to track patterns and may be used to take legal action against a company.

Always report suspicious behavior immediately to protect yourself and others from fraud. You’ll be able to sleep better knowing you took action at the right time in the future. If you have more questions about protecting yourself from fraud, make sure to contact us at Lou Aggetta Insurance Inc.