How To Spot a Fake Car Insurance Company

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Scams are everywhere nowadays, made easier by the fact that just about everyone has access to computers, mobile devices, and the Internet. One of these scams is fake insurance carriers. This may not be something that many people run across very often, but this scam often catches those in the process of looking for cheaper insurance rates. Here, we want to discuss what you need to know about spotting fake insurance companies before you make a mistake and hand over your information to scammers. After a car accident in California, your Long Beach car accident lawyer will help navigate the insurance claim process. If you have been unknowingly using a fake insurance policy, that will greatly change the outcome of your case. 

Who is Affected by Insurance Scams?

Anyone can fall victim to an insurance scam, even when they are looking for auto insurance. However, those more likely to fall victim to this type of scam include elderly individuals who may not have had to shop for insurance in a while or those just starting their driving careers.

How to Spot a Scam

If you are looking for auto insurance, we encourage you to do due diligence when you decide on a company to work with. First, make sure you call insurance companies that are reputable and make sure that you are on the correct website. There are many spoof websites out there, some that do a very good job of mimicking the major auto insurance carriers. Additionally, e-mail inboxes often fill up with offers of cheap auto insurance, but these are almost always scams.

State Licensing

Every insurance company is required to hold state licensing as well as other documentation to prove that they are legitimate. Insurance agents must be certified in order to write up auto insurance policies. You can ask any insurance agent you speak to about the insurance company’s state licensing.

Strange Names

One sign that an insurance carrier may not be legitimate is that they could have a weird-sounding or unfamiliar name. This does not mean that a smaller insurance company you may not have heard of is not legitimate, but you need to do a little more digging if it is not a common name like GEICO, State Farm, or Allstate.

Super Low Pricing

If an insurance carrier is offering incredibly low insurance policies, this is another sign that there may be a scam at hand. The vast majority of auto insurance policies are going to cost more than $50 a month. Any policy that offers much less than the typical insurance policy is likely going to be a scam.

Do a Google Search

When you are deciding to work with an insurance carrier, we encourage you to type the name of the insurance carrier into Google or another search engine and then type in the word “scam” after it. If there have been any issues with the insurance carrier and scams, this will likely show up in the search results. In many cases, insurance carriers themselves will warn about insurance scams.

Ask a Friend or Family Member

If you have a friend or family member who is used to dealing with insurance carriers, please ask them for assistance. Even if it is just to double-check to make sure that you are doing the right thing and signing up for the right types of coverage, someone else may be able to spot the scam as it is happening.