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Protect Yourself from Car Insurance Fraud

Protect yourself from car insurance fraud. As an auto insurance policy holder, you are always at risk to be the unwitting victim of different types of fraud. Some of them relate to activities surrounding car accident coverage, and some are just tied to the purchase of insurance protection. Today's consumers need to be aware that there is a huge and growing market for ever increasingly complex fraud schemes aimed at car insurance policy holders. Learn everything you can and avoid being victimized.

Avoid Getting Defrauded on Insurance Purchases

Many people understand the risk of fraud in car accident situations, but not nearly as many understand the risk during the insurance purchase process. Insurance buying is in itself not any riskier than any other purchase, but there are definitely circumstances such as dealing with OEM parts and car insurance that come up in which unwitting consumers may be harmed. To minimize risk and to protect yourself to the greatest degree possible, think about these suggestions and examples of situations that can come up to put you in danger.

There are certain times when insurance coverage offers have to be looked at with a measure of skepticism. Many times these offers turn out to be lures from scam artists trying to take advantage of innocent people. Buyers should beware of door to door salespeople selling insurance products. Anything they are selling can be bought directly from an agency or online so there is really no need to take a chance having your personal or financial information exposed. Incoming telephone callers or unsolicited internet advertisements fall under this same category. Generally speaking, it is best to do your own research on auto insurance and solicit your own quotes from companies you trust. A great way to do that is to use this site to locate professionals in your geographical area.

If you are ever suspicious of a company because its online auto insurance rate is so much lower than everybody else's, get a closer look at the policies being offered. Make sure the coverage reflected in those policies represents equal coverage to that which all of the other quotes include. Oftentimes cut rate insurers offer incredibly low prices, with the catch being that the insurance policy sold comes with much less protection, very high deductibles, or a long list of exclusions to coverage. It is a common practice among certain cut rate insurers to offer these low price policies as an inducement to win over customers. Many drivers focus in on just the price of the plan and do not even examine the coverage being offered. We often assume that all car insurance policies are the same, but this is simply not true.

Contacts to Check on Insurers

Sometimes in dealing with an insurer there are not such obvious red flags when examining quotes, but something just doesn't seem quite right about them or you have a bad feeling about things. When this is the case, there are ways to follow up on your hunch. Before anything else, check with the insurance department in your home state to make sure that the company is licensed to do business where you live. Look up the company's ratings with the Better Business Bureau. Following up on this type of information can give consumers a great deal of insight they might otherwise not have any access to. When a company is trying to sell you a product they will normally put their best foot forward and you might not even get a realistic preview of what it would be like to work with them. Car insurance fraud can happen, but smart consumers understand that there are many top quality insurers in every state that will do an excellent job of representing them and their families.

Car Accident Auto Insurance Fraud

And this is to say nothing of the huge problem that still persists in staged accident auto insurance fraud. Whether it is a simple swoop and squat where the other driver forces you to hit them so they can collect the insurance payment, or an elaborate scheme involving body shops, doctors, and others, there are many increasingly complex ways drivers and insurance companies get defrauded in collisions all across the country. Staged accident auto insurance fraud costs drivers millions of dollars in higher premiums each year, so avoiding fraud can save you a lot of money on your rates over the long haul. Getting lured into just one accident that looks like it was your fault can lead to higher rates for several years or even get you canceled.

Protecting yourself from car insurance fraud helps you avoid unnecessary accidents and other situations, and it also can save you a lot of money. Pay attention, be skeptical and do everything you can to avoid becoming the latest victim of auto insurance fraud.

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