Car Insurance: Don't Be Fooled By Scams

Often when you think of car insurance scams, it is usually about other people deliberately causing accidents in order to claim on their insurance or yours. However, there are other kinds of scams that can occur when you sign up for car insurance. Some common types of scams include:

. Being duped by a low quote.
It can take some time doing your due diligence to find the best deal on car insurance. Everyone wants to find the cheapest price, right? So you look around until you are confident that you've found a great price. You sign up, pay your money and congratulate yourself on the amount your were able to save. Everything seems fine. Then a few weeks on, you receive a letter advising that there was a 'company rate error' and the amount you were quote was incorrect. The real price should be several hundred dollars more. A company that follows this sort of unethical behavior can be difficult to spot. However, if they offer film processing vouchers or free coupons as part of their price then be on alert. Legitimate and ethical companies are unlikely to do that just to get your business.

. Purchasing from a Fake Agent.
Just because an auto insurance agent has a street presence doesn't necessarily mean that they are a bona fide agent representing a genuine insurance company. A proof-of-insurance card can be forged just as easily as letterhead, business cards and signage can. One clue that things may not be as they seem is if the agent issues insurance using their own business name. They can't legitimately do that because they are 'agents' which means that they represent an insurance company and aren't an auto insurance company in their own right.

. Going through a middleman who represents a Fake Company.
While the agent may seem legitimate, you need to do your homework on the company they claim to represent.

. Unfair alliance between an auto insurance company and repairer that benefits them at the expense of the insurer. For example, a car insurance company may recommend a repairer that inflates the worth of the car and then charges a high amount to repair the car. In this instance, the car should probably be written off as totalled but the repairer doesn't do this because it will lose work and the insurance company will lose out on deductibles. If this happens to you, ask your insurance company for the details of another repair company and get a second quote. Or organize your own quote as evidence to highlight the true worth of the repairs.

. Car insurance quote in exchange for personal information.
If you receive a phone call from an insurance representative with an offer for a free quote on car insurance in return for personal information, don't be sucked in. If you do succumb you are leaving yourself open to having your identity stolen. The only information required for a car insurance quote should be details about the car. Of course, eventually they will need more than that to proceed with organizing auto insurance cover but by then you should be feeling comfortable enough to provide that.

Just knowing what to look out for when you next organize your auto insurance can save you time, money and unnecessary frustration. Remember to be alert for signs that all is not as it seems!