Information and Advice to Protect Yourself From Scams.
The Coalition Against Insurance Fraud offers you a series of podcasts through their FraudFeed to keep you informed on everything insurance-scam related. They tell you how to identify an insurance fraud and protect yourself.
Bad Apple Agents
In a particular podcast, Bad Apple Agents, the Coalition Against Insurance Fraud tells a brief story of a fraud victim. A scam artist sold a fake car insurance policy to a woman who ended up having her car towed and impounded due to not having insurance. The only way for her to get it back was to purchase it at a car auction! Listen to the podcast for details on this unfortunate incident.
The Coalition Against Insurance Fraud goes on to give advice from several fraud prevention experts. Each expert had tips on how to protect yourself against insurance scams.
FraudFeed Advice Highlights
Advice on the tricks bad apple agents might use and how to protect yourself.
Bad Apple Agents may:
- Print out fake policies on a home printer.
- Sell a real policy but never send the money to the insurance company.
- Ask you to pay them your monthly premium directly.
- Convince you to buy insurance you don’t need.
- Convince you that you must cancel your current policy and buy a new one.
- Secretly add on coverage you didn’t ask for – maybe additional riders you did not want.
- Tell you it’s a one-time-offer.
You can protect yourself by:
- Checking to see if the agent is legitimate.
- Contacting the insurance company directly to make sure you have a policy.
- Writing out all checks directly to the insurance company (never to the agent).
- Reading your policy thoroughly to make sure you understand your coverage.
Note: There may be very legitimate reasons you may want to cancel your policy and buy a new one, or add additional coverage to your policy. A good and ethical insurance agent will go over all your options and make sure you get the coverage you need.
According to the Coalition Against Insurance Fraud, seniors are especially vulnerable to scams. If you are a senior, make sure to have a relative be there with you when looking at insurance policies. They can be a second pair of eyes for you.
If you have a senior relative or know a senior, let them know you can help prevent them from being taken advantage of by such scammers. Be there for them. Ask the agent tough questions.
Follow the FraudFeed Podcasts
Stay safe and informed with the Coalition Against Insurance Fraud.
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This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice.