Insurance

How to avoid Vehicle Insurance Scam and Fraud

If you ever become a victim of vehicle insurance fraud, there is a good chance you will pay heavily. First, you will pay high premiums due to opting for an expensive claim, and secondly, as with any vehicle crash, you and your loved ones might pay with your own lives. Therefore, it is in your best interest to seek the help of a highly trained Kent car accident lawyer to avoid becoming a victim of insurance fraud in your pursuit for compensation.

Here are some of the red flags associated with car insurance scams.

1. Bait-and-switch interest rates

Some insurance companies offer you an initial discount because you are a new customer to them. These discounts are scraped off when you renew the policy. They also, give lower insurance coverage but charge high deductibles with plenty of exclusions. All this is clearly a sign of a scam. In such a situation, take your time to assess this option carefully. Also, compare car insurance plans of other insurance providers. Look for words like “introductory offer” and “first month”. These words should raise some red flags.

2. Staged accidents

A driver may mock an accident to get a quick claim from the insurer. Some examples of staged accidents; parking lot accidents, rear-end collision, left turn yield collisions etc. Drive as defensively as you can. Some accidents cannot be avoided, in those situations, inform the insurance company as soon as possible and be as descriptive as possible when giving the details of the accident.

3. Additional staged damage

The driver after the accident may inflict further damage upon their own car to get some extra money from the insurer. Film the accident scene and take as many photos as possible of both cars. Fill the accident report at the earliest and be as descriptive as possible.

4. Excessive mechanic repairs

Some mechanics fix your car but make sure that it comes back to them soon. They use faulty spare parts so that the customer and the insurance company pay them more. To avoid such scams, it is advised that you only take your car to the mechanic recommended by the insurer. Perform your due diligence and zero-in on the mechanic with high customer ratings.

5. Independent agent payment theft

Some insurance agents take the premium money and put it in their pockets instead of giving you the policy. When you claim the money, you will find that the company has no record of your policy. Don’t fall for the words of the agent. Crosscheck their authenticity by calling the agent’s company. Ask for receipts and if they fail to provide receipts or proof after substantial request, then it’s a scam.

6. Extra agent commission

Some agents trick you into paying a premium for coverage which you might never need. It is always advised to check the cover provided on the company website.

Lack of transparency in the insurance contract, demand for confidential information, improper documentation, a sense of urgency etc. are signs of insurance scam and fraud. Watch out for these red flags when signing a vehicle insurance contract.

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