With frauds and scams relating to car insurance on the rise, it becomes all the more important for you as a customer to remain vigilant and avoid being take for a ride. There are plenty of incidents where gullible customers have been duped of their hard earned money and have fallen victim to such insurance frauds. Therefore, it is essential to be a smart and well informed customer and know how to protect yourself. Let us get familiar with some tips on how to keep away from any such trouble.
First of all, do not entertain those telephone callers or door-to-door salespeople offering you a car insurance at a much lower rate than the market. It could be a scam as the coverage might hardly cover anything and might be full of exclusions. You will discover all those gaps when you need the coverage.
Whenever buying car insurance form a certain company, do basic ground check. You can always get in touch with your state’s insurance department and make sure they are licensed. Look for free services and make sure they are clearly mentioned in the insurance bill. If you come to know that the insurance company has invested in auto repair shops, this should ring a bell of warning inside your head. One should protect their insurance identification number and give it the same importance as the social security number as some fraudulent companies might use it in a scam.
It is a common gag to see a car pull in front of you when driving and forcing you to follow dangerously close. Be wary of a staged accident. Be cautious if you find someone following you or behaving suspiciously. Stop at the nearest police or gas station and notify them in case of an accident, never sign blank insurance claim forms. An unknowing victim often ends up getting scammed if he is not careful. The best way to evade car insurance scams is to remain alert when driving especially in heavy traffic and don’t take your eyes off the road. Follow the speed limit and maintain the right distance between you and the car in front of you.
Car insurance fraud is a certainty that one should be aware of. Thankfully, most of the insurance claims are claimed honestly and there is no intention of committing fraud. However, these frauds raise auto insurance costs for honest customers and therefore one should educate themselves on these scams and keep them under control.