Dont Be Fooled: Avoiding Car Insurance Scams
The car insurance industry is huge, and it is rife with less-than-reputable scammers trying to make a buck. The next time you’re in the market for car insurance, be forewarned…and forearmed.
Car insurance scams are more common than you think, so what can you do to protect yourself? First of all, don’t just jump on the best deal you find. If it sounds too good to be true, it usually means it is.
When you are going to purchase insurance, make sure you purchase through a reputable company. There are many websites out there that are dedicated to posting lists of scammers and disreputable companies. The important thing is to make sure you do your research so you don’t fall victim to car insurance scams.
To avoid scams, try becoming an AA car insurance member and get free car insurance quotes. Even if you decide not to become a member of a certain car insurer, you can still take advantage of the free quotes they offer.
Most reputable car insurance companies will give you insurance quotes for free. Run; don’t walk, if they ask you to pay for a quote. Car insurance companies should only charge you for insurance premiums and any affiliated taxes and/or fees.
Another warning sign to potential scams are deals that offer exaggerated reduced fees (as compared to the rest of the market) or free months. Again, if it seems to good to be true, it probably is. Car insurance is an expense that is necessary, and expensive, so be prepared to spend quite a bit. This doesn’t mean you have to pay for the most expensive service, but for the most part, most insurers’ rates are within the same ballpark.
Here’s a worst-case scenario: Imagine that you bought insurance from a company with extremely low premiums. You’re thinking you got a really great deal; that is, until you’re in a car accident and discover that the insurance you bought isn’t legit. Buying extremely cheap car insurance could cost you dearly in the long run.
Bottom line: Do your homework. Time spent researching is time spent wisely, and could save you lots of money, and grief, in the end. Be sure you know what you’re signing up for before you make a commitment.
Filed under: Business