Auto insurance fraud, or accident scams, occur when someone purposely gets into an accident with you so that they can collect for damages. Auto insurance fraud also occurs when you purchase car insurance from a scammer. While some of these situations aren’t necessarily avoidable, there are some things you can do to protect yourself from accidents scams and insurance tricksters. Being an informed customer and taking the time to contact your state’s insurance department are just a couple of things you can do to avoid becoming a victim of fraud.
Here are some other tips for reducing your risk of auto insurance fraud:
Be Mindful of Suspicious Activity on the Road
Don’t let cars tail you too closely and move your car out of a lane when a vehicle seems to be veering dangerously close. People who are trying to set someone up for an accident might take their time to follow you closely for a while or even drive recklessly on wide roadways. Be vigilant when driving and always drive defensively to avoid an accident.
Ignore Door-to-Door Salespeople
Unsolicited sales calls from “salespeople” claiming to sell car insurance at a discounted rate are often scams. Avoid these scam artists by not even opening the door and never sign any type of contract until you’ve had a chance to research the company and check in with the Better Business Bureau. Some of these agents and scam artists can be difficult to detect, but it’s important to know that legitimate insurance agents won’t be doing any type of cold-calling or door-to-door sales.
Check Insurance Agent License Information
Even if an insurance agent has posted their license number on a website or attached it to an email, be cautious and run the numbers through your state’s insurance department. Your state’s insurance department will be able to verify whether the license number is real and can give you some more information about the agent or company. Don’t be afraid to run a basic online search for the insurance agent’s name or the company to see if there have been any complaints or reports of scams.
Don’t Fall for Super-Low Prices
One of the biggest red flags of an insurance scam is extremely low prices. If an insurance “company” claims to be offering a deal that is much lower than what you’ve been quoted with other insurance providers, take extra measures to determine whether they are a real company. If the offer seems too good to be true, it probably is. Insurance companies only have so much leeway to reduce rates and offer discounts, so anything that is really far outside of your average rates is probably a scam.
Sources:
netQuote – Car Theft and Insurance Fraud
Edmunds – Protect Yourself from Auto Insurance Fraud
Nationwide – Steer Clear of Car Accident Scams