As a consumer, it’s important to be aware of the different types of insurance scams that are out there. By knowing what to look for, you can avoid becoming a victim and protect yourself and your family.
Here are the 15 most common scams and how to avoid them
1. The phishing scam: This is where an insurance agent sends you an email asking for personal information like your Social Security number or bank account number.
Don’t respond to any emails from unknown senders, and always be suspicious of unsolicited requests for personal information.
2. The phony insurance policy scam: This is where an agent tries to sell you a bogus insurance policy.
Always check with the National Association of Insurance Commissioners (NAIC) to see if the agent is licensed and has a good reputation.
3. The over-inflated insurance claim scam: This is when an agent tries to get you to file a false insurance claim in order to receive a larger payout.
Be sure to keep accurate records of all your possessions and always report any damage or theft immediately.
4. The no-show scam: This is when an agent fails to show up for an appointment or cancels at the last minute.
Always ask for a refund if this happens, and never do business with an agent who has a poor track record.
5. The bait and switch scam: This is when an agent tries to sell you one policy but then switches it at the last minute for a more expensive policy.
Make sure you read all the fine print before signing anything, and always ask questions if something doesn’t make sense.
6. The premium increase scam: This is when an agent increases your premium without giving you any reason why.
If this happens, contact your state insurance commissioner and report the agent.
7. The unlicensed agent scam: This is when an agent operates without a license or with a suspended license.
Always check with the NAIC to see if an agent is licensed, and never do business with someone who doesn’t have a good reputation.
8. The low-ball offer scam: This is when an agent offers you a low quote but then increases it once you’ve signed up for coverage.
Be sure to get multiple quotes from different agents before making a decision, and never sign anything until you’re sure you understand all the terms and conditions.