How to avoid Insurance Scams

  1. Never give out your personal information to an incoming caller:

If a business or individual phones you, avoid giving them your information, especially if you aren’t actively looking for auto insurance.


  1. Be cautious while clicking on insurance adverts online:

Although the advertising can appear to be credible, it would be wiser for you to conduct an Internet search to find the insurance provider and agent.


  1. Do your research on the agent:

Even if they represent the aforementioned insurance provider, they could not be honest. Before buying a policy, always do your homework on the company and the particular agent.


  1. Research the insurance provider:

If you are unfamiliar with the insurance provider, it is advisable to do your homework to see whether they are licensed and able to legally operate in your state. You may do this by visiting the website of your state’s insurance department.


  1. Never consent to buying extremely low-cost insurance:

if the premium is 90% below average, there’s a significant possibility the insurance is either bogus or doesn’t cover what you believe it does. Always read the policy’s fine print.


  1. Dishonest insurance broker:

A majority of insurance agents are competent and moral, but others are not. These brokers could fraudulently raise your rates so they can keep the excess, or they might include coverages in your policy that you didn’t request so they can earn a higher fee. They could even advise switching to a more expensive insurance plan because it “provides greater coverage.”