How to Avoid Getting Fake Car Insurance

The insurance business is undoubtedly one of the largest industries in today’s era. It involves multi-billion investments among different corporate individuals and for that sole reason alone, it’s no wonder that hundred-folds in dollar baskets are flowing in this company. To top that, the services covered in every insurance policy are all going up every year. So it’s safe enough to assume that companies are also gaining more dollars every year.

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As with all money-based companies, the insurance industry is not immune to fraudulent acts, whether it happens internally or externally. In the case of the internal frauds, this could happen once those in the positions aim to get more than what they’re supposed to be receiving, or decided to fool the people around them to gain more policyholders. In comparison with external frauds, this could involve individuals that uses fake policies in order to receive an insurance claim they didn’t enroll for, or individuals who fake their identity as brokers and fooled the masses into thinking that they’ve actually applied for a legal policy. The latter is what we’re going to talk about specifically in the line of auto-insurance.

The rates of reported fake auto insurance has suddenly been spiking up dramatically lately. Most of these are well-played scams that lure you into thinking that you’ve actually made a deal with a legal broker. With the rise of modern technology, it’s no wonder that these fraudulent acts are very sophisticated and organized, so much so that the insurance companies themselves would hardly notice what’s going on. These scammers indeed are greatly benefiting in this fraudulent acts. And who’s at the pit of it all? The victims. The company may suffer a surge of loss but the loss you’ll suffer is greater.

Along with this statement, it is very much important that you carefully take heed of these kinds of transactions to minimize the risk of getting a fake auto insurance. To help you in determining if your insurance is the real deal, or just a piece of false papers, here are some the useful tips to follow.

  • Ask for their licenses.
  • Every insurance company are required to keep a state license and other documentation as a proof of their legitimacy. So ask for the license of the agent or the broker. If he or she refuses to show it, it’s going to be suspicious because there’s no reason to not show the license for a licensed insurance agent. If they do present it, examine it carefully.

  • Look for a hint of legitimacy.
  • As with any other insurance, an auto insurance deal have their own routine lingo used in their documents. These components are those of split limit or single limit liability, collision or comprehensive coverage, uninsured or under-insured motorist coverage, road safety assistance and other extras. If the documents don’t contain any of these, then are bigger probabilities of fraud in this instance.

  • Contact or search the company.
  • One hint that the documents presented aren’t the real deal is that they sometimes have weird names and are not the popular choices. So better have your thorough background check of the company and see if it’s a registered one. If it’s indeed a registered one,  try contacting the company and ask if the transaction along with the name of the broker is a recognized one.

  • The cost.
  • Auto insurance is really costly. There are really a lot of chances that we tend to be enticed with lower costs policies. With that being said, it is critical to know that these insurance policies don’t offer a monthly payment of less than $50 a month. If they had very low monthly payments, there are high chances that these aren’t the real deal, It’s probably even better to decide for yourself and assume that with such low cost, your future claims are surely at risk.

    These are the few tips we can share to you. Always remember that a thorough inspection of the documents presented is a need for every insurance policy that you wish to enroll.

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