Some insurance companies advertise very low introductory rates and special one-time discounts. These offers usually expire when the customer renews the policy, but the low rates often come with high deductibles, exclusions, and low coverage. To avoid paying more than you need to, shop around and choose a company with a good reputation. In some cases, the insurance company you are buying from is a veiled scam.
A common insurance scam involves pretending to be a doctor, lawyer, or insurance expert, and presenting themselves as the victim. The scammer will use their authority to collect information and file an illegitimate claim, thereby raising the insured’s insurance premiums significantly. It is critical to collect as much information as possible after an accident, including the names of witnesses and a copy of the insurance policy.
Insurance scams can be particularly common among first-time car buyers. Some insurance agents, if corrupt, will try to swindle people out of payments by sneaking in additional coverage. This practice is called “sliding” and can add hundreds of dollars to your payments every year. If you are suspicious of your insurance agent, walk away and check your documents. If you are not sure, you may be a victim of this scam.
Another type of scam involves car insurance premium theft. The scammer will ask you for your phone number and collect your personal information so he can file a false claim on your insurance. This type of car insurance scam is particularly common among high-end vehicles, as the scammers expect to make a much bigger profit from them. The key to avoiding a scammer is to document your collision well, collect evidence, and get an official report.