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Tips on Avoiding Insurance Frauds and Scams

Bill Gassett's picture
Tips to Avoid Insurance Scams

Don't Be Scammed When Getting an Insurance Policy

The world we live in is filled with scammers. Nasty people who are out to make a quick buck and take advantage of others are everywhere. Unfortunately, it's hard to escape and easy to fall prey to.

Whether you are getting a home insurance policy or some other type of insurance it is essential you pay attention to who you're dealing with.

It makes perfect sense that with the demand for insurance constantly increasing, there is also an increase in the number of various types of insurance frauds and scams. Fraudsters constantly strive to come up with new and innovative ways to reap the benefits of our investments, which is why we need to be alert and make smart decisions related to our insurance policies.

In this article, we’ll try to give you some tips which should ensure that you never fall victim to insurance fraud. By knowing what to look for you'll increase your odds that it will never happen to you.

Check Your Agent’s ID proof

All agents working on behalf of insurance companies have to undergo stringent training, after which they are issued a proof identification. So, if you are approached by an agent, ask for their ID, write down their details and call the customer care service number of the insurer to confirm their identity.

The is the first step you need to take to avoid falling victim to insurance fraud.

Don’t Pay in Cash

You must never pay in cash, which is why legitimate agents never ask you for cash. Next, to be sure you’re writing the check to the right amount, you need to call the customer care center again in order to confirm the details to be mentioned on the check.

The reason you need to do this is very simple. This will ensure that you don’t unknowingly write a check to an agent, who will deposit the funds under a similar-sounding name and fall victim to one of many possible insurance frauds. Even in cases when you hire an insurance broker, the details on the check should be for the insurance company, not for any such company.

Make Sure You Get The Right Type of Policy

You need to carefully read your policy before signing so that you’re sure it covers everything you need and nothing else. It’s not uncommon that people go through a lot of trouble dealing with various types of junk insurance they’ve been sold. Though you can get professional help with dealing with such issues, it’s always better to prevent a problem from arising than deal with it later.

Never Divulge Details of Your Policy

If you don’t want to attract insurance fraud cases, you shouldn’t disclose details of your policy document to any unknown third party. Sometimes, a fraudster might pose as an insurance agent, asking you to tell them the details regarding your policy. They can either pose to be consumer rights personnel or claim to be calling you from the service center of the insurance provider.

If you receive a call from someone asking if you have any complaints about your insurance policy, you need to be on the red alert.

Buy Insurance Policies Online

Probably the safest way to avoid the risk of insurance fraud and buy insurance policies without dealing with an agent is to purchase it online, thus cutting out the middleman. Also, you’ll be guaranteed a safe and transparent transaction.

You just need to follow the payment steps and never disclose your credit card information to anyone. Finally, check to confirm that you only make payments on the insurance provider’s recommended site, which must have a secure SSL-enabled payment gateway.

Report if You Lose Your Policy Document

Fraudsters can also gain access to your policy documents and make a claim in your name, which is why you need to keep your insurance document in a locker and make copies of it, which should also be kept safe. In case you realize you don’t know where your documents are, immediately notify the insurance fraud investigator, who will inform you about the next steps you need to take if any.

Don’t Let Anyone Else Write Your Policy Document

If you’ve decided to buy your policy online, you need to make sure you fill in the policy documents yourself. Read and understand the terms and conditions, inclusions, and exclusions and check for spelling mistakes, withholding of information, and misrepresentation of facts if the policy document is being filled by an agent.

Again, don’t sign any policy documents before you read them carefully,

Never Use a Public Network to Buy an Insurance Policy

There has been an increase in the number of electronically perpetrated insurance frauds. One of the main reasons for that is that people use public Wi-Fi networks to buy insurance. Scammers use that fact to gain access to your personal information. Allowing this to happen would be a significant financial mistake when getting your first home and insurance policy.

So, never use public networks for tasks like these, always use encrypted connections when making payments online and if you’re using a public computer, make sure you sign out of it after using it.

If you follow these tips, you’ll prevent falling victim to most types of insurance frauds and scams. Never underestimate the possibility of someone wanting to trick you and exercise caution at all times.

About the author: the above article on avoiding insurance fraud and scams was written by Amelia Atkins. Amelia is an author at Smooth Decorator and a fresh architecture student.

The love for architecture and design runs in her family. She knew what she wanted to do from a very young age. You can often find her with a notepad in hand, just looking at the clouds, dreaming about the next skyscraper.

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