Insurance Scams: How Not to Be a Victim

Insurance Scams: How Not to Be a Victim

Purchasing insurance of any kind should be a decision made between you, your family, and a trusty-worthy, legitimate insurance professional. Unfortunately, this isn’t always the case, as crooked insurance agents are becoming more and more commonplace.

Due to this fact, it is imperative that you safeguard your insurance investments and ensure that you take all of the necessary precautions. Rest assured that you won’t be offending a legitimate insurance agent—they want to prove their credentials and intentions, so you’ll make a deal with them and not some crook. If your potential agent fights back about being legitimized, well, there’s your first red flag.

Three of the Most Common Insurance Scams

1.      Phantom Insurance Companies

When choosing to go with a smaller, not-so-well-know, insurance company, you should be aware that there are plenty of companies out there just posing as insurance companies.

By offering you a rate that trumps all of the competitions ten-fold, they reel you in, take your premiums, and then as soon as you need to file a claim, they disappear—never to be seen, or heard from, again.

Safety First!

  • Never sign anything until you’ve had a chance to vet the company
  • It is absolutely within your legal right to take as much time as you need to fully vet an insurance company to your full satisfaction
  • Translate any threats about time limits, offer expirations, or any other form of “being pressured to buy” as a red flag; legitimate companies won’t do this
  • Call up your state insurance department and request the licensing information pertaining to the company you’re interested in buying from

2.     Crooks with Legitimate Business Cards

To cheat you out of your hard earned cash, meant to safeguard your family with an insurance policy that you carefully selected, crooked agents will pocket your premiums and never turn out a cent to the actual company.

For years, they’ll do this and then when it actually comes time for you to file a claim, the insurance company will not only reject it, but inform you that you haven’t carried a policy with them in years.

Safety First!

  • Any insurance policy buy should get you a physical copy of your policy and an insurance ID card; if you haven’t received these in a timely manner, this is a red flag
  • Always sign your checks over to the insurance company, not the agent
  • Contact your insurance company as soon as you think something might be wrong

3.     Pedestrian Insurance Scammers

One of the most common insurance scams actually doesn’t originate from insurance companies, or agents, but with every day people walking out on the street.

In an elaborate scheme, sometimes a “fake” car accident will be planned with staged witnesses who will cry up and down to the police officer that it was all your fault. Of course, they’re in on this scheme with the driver and are planning on banking off of your insurance.

Safety First! 

  • Don’t give these “pedestrians” a leg up; obey all rules of the road
  • Don’t be bullied; if you don’t think you were at fault, tell the officer that
  • Be sure to report any suspicious activity to both the officer and your insurance company; they’ll be happy to investigate the matter for you

The most reliable way to avoid being taken advantage of when purchasing insurance is to always deal with a reliable provider.

You can reach Suncorps website at Suncorp is one of the leading providers of Australian life insurance, visit their site today to find out more about their available coverage.

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