Tips to Avoid Auto Insurance Scams

By | March 4, 2014

Buying a car is a riskiest investment. You may drive safely but there are other drivers whose driving is rash and can be dangerous for themselves as well as yourself. If you are not careful, you may end up giving thousands or even more when an accident happens. In order to protect yourself from potential liability and fatalities, you need to buy auto insurance. But you need to be cautious while choosing an insurance product. Or, you may end up paying insurance fraudsters.

There are several ways people can fall prey to auto insurance fraud. To help you to become victim of this fraud, here are some tips.

When buying auto insurance

  • Find out whether the company is licensed: Contact the state’s insurance department to confirm that the insurance company and the agent are licensed.
  • Be suspicious if the coverage is too cheap: Be suspicious if the insurance price seems to be too lower than others in the market. It might be a scam. It could be a way for getting you enrolled and charging expensive fees later.
  • Research thoroughly before you sign up for anything: Never make a final decision to buy insurance before seeing the contract. If the company is not showing the contract to you, it means that there is something they are hiding. Read everything and do not sign if you are unsure of anything.
  • Be alert for the bogus plans: This refers to information posted on adds you may receive in your emails.
  • Carefully review their explanations: Make sure that you review their explanation. If their statement does not give you enough information, contact them.
  • Things that should be covered: See to it that your insurance coverage includes, “ complete seals and gaskets” and “wear and tear”. Some insurance companies cover the entire things, but they really don’t.

When Crashed

  • Calling police: Call police and let them come to the spot even if the accident is minor. Often fraudsters damage their car further more after the accident in order to inflate their claim. Calling police on the accident site can protect you.
  • Contact your agent: As soon as after contacting police, call your insurance agent giving details of the accident. Remember, never settle the claim for the cash.
  • Make a note: Note down the driver’s name, address, phone number, license number and the car number as a precautionary measure, if they leave the accident scene.
  • Avoid signing any blank claim form: Never sign insurance form that is blank. This might be a scam by which you will be put in trouble.

With some precautions, you can protect yourself from paying additional costs and also save you from the car insurance scams.