Nsurance Info
3 Ways Your Auto
Insurance Company Could Be Scamming You
Are you scouting for auto insurance? Be
careful and make your decisions prudently, as chances are
your Auto Insurance Company is scamming you. Most of us
believe that it is only people who scam auto insurance
companies, but there have been cases where citizens have
been defrauded by these insurance agencies.
Protecting yourself from auto insurance
scam would save you from higher premiums in the long run.
For your sake, we have listed 3 ways your auto insurance
company could scam you:
Playing on your ignorance - Most people
don't clearly understand their insurance needs and are
also unaware of different products floating around in the
market. This ignorance exposes them to scamming by dubious
insurance companies and agents.
Most insurance companies play on
your instinct and coax you to choose a plan with the
lowest deductible possible, thus, extracting a much higher
premium amount.
Also, since the paper work is so
cumbersome, many people don't bother to go through the
fine print. This is where insurance companies play it
smart. You could end up paying more for a coverage you
never sought.
Low Balling - There is a burgeoning
segment of insurance agencies, with in-your-face TV and
radio advertisements, claiming to offer you the cheapest
possible insurance deal. These agencies scam you in the
most obvious way; they resort to "Low Balling".
Once you have signed in for their
insurance scheme, a letter would follow stating that you
were under charged due to a "Company Rate Error". In such
a case, you would most often than not, pay-up, as not
paying would mean that you lose whatever premium you have
already paid.
Coaxing you to pay 'Cash' - The greatest
tip we can offer is "Do Investigate". The biggest scamming
cases involve fraudulent insurance agencies and agents.
Usually, the modus operandi followed by these entities is
to hard-sell their schemes to unassuming citizens and coax
them to pay the premium in cash.
Once they receive the cash, you are left
high and dry, without an insurance cover. The loop-hole is
that if you procure insurance from an unlicensed agent,
then you are not protected.
