Beaware Of Car Insurance Scams
There are many different scams out there and it is an unfortunate reality that we live in a world where people spend their days thinking up schemes to cheat us of out our money. California car insurance is getting a bad rap due to all of the counterfeit car insurance schemes that are out there. One escalating car insurance scam involves the sale of “cheap” auto insurance to unsuspecting buyers. The auto insurance looks real but in reality it is coverage that is invalid or doesn’t exist. This article should help you be aware of the different types of car insurance scams that are out there.
First, you should know about the most common car insurance scams. You will fall a prey to an individual pretending to be a licensed auto insurance agent or broker. He will cheat you in two ways. This person will charge a fee to prepare a quote for you. (Officially, there is no such charge). The fake insurance agent will offer you a quote, which is significantly less than what you are presently paying or have been quoted.
The fake insurance broker gets all your personal information including your driving history. This fake broker will now call a licensed insurance company for an auto insurance quote and pretend to be you. The fake broker will add that you belong to a group that is eligible for a discount. You can then pay your premium directly to the insurance company and receive a proof of insurance coverage.
Now you think you are clever enough to have inexpensive car insurance. However, the fact is no licensed insurance agent or broker can ever charge a fee. Moreover, the coverage you now think you have is invalid, because the information that was given to the company is false.
Another type of car insurance scams is marketing that offers cheap car insurance premiums. The advertising shows the coverage at rates significantly lower than the insurance you now have. Sometimes the offer is for free auto insurance for a period of time, for example “the first three months free”.
The Scam insurance broker will provide a phone number in the marketing materials. If you call that number, you will get a quote. They may ask you to remit either a partial or a full payment through a transfer or money wiring service. In order to accept that quote. There may even give you an option to meet in person to pay in cash or with a cashiers check.
You may be proud that you have a great deal on insurance. Nevertheless, in reality the policy was never issued. You will be shocked when you realize that the individual you contacted pocketed your payment.
They will say that there is no free lunch to sound good…You should not forget that driving without valid auto insurance is against the law. Therefore, you should ensure that you have valid auto insurance. I am sure you will not want to find out that you do not have valid auto insurance when involved in an auto accident or by being pulled over by the police.
Filed under: Business