It seems as though now, more than ever, the barrage of insurance solicitation on primetime and online is constant. The promise of lower premiums for more coverage may be tempting, but the validity of these company’s claims must be considered. In insurance scams, truth is relative. It can be, and is, manipulated to suit the company’s purpose—profit. There are tools the smart consumer can use, however, to spot and avoid the insurance scam:
- Beware the unsolicited insurance offer. Unless you requested the information, anything received by e-mail, snail mail, or fax should be regarded with caution. Internet-based insurance companies should also be skeptically treated. If full contact and location information aren’t provided, a toll-free number being the only point of contact, this is a huge red flag.
- Pay attention to the literature. If you didn’t always in Freshman English, now is the time. Painfully obvious as it sounds, if the word “insurance” isn’t used in company or policy information, steer clear. Phony providers can conveniently use different terminology to avoid fulfilling their obligations.
- Don’t be pressured by pushy salesmen. A company that makes you uncomfortable or annoyed is not one to do business with. Indications of a fake provider can include a lack of written materials to review before purchasing insurance, or offers that end soon, forcing you to buy before they expire. Legitimate insurance companies don’t have any such tricks.
- Listen to your instincts. Avoid like the plague anything that feels too good to be true. Some scams are harder to spot than others, but there is usually some indication no matter how slick the operation. To be certain whether the insurance provider is genuine, contact the Commissioner of Insurance Office for your state and inquire if they have a license. No license is highly suspicious.
The world of insurance can be tricky to navigate, but to get a quote from an agency without a sales pitch or gimmicks, contact Homer Smith Insurance. Visit our website, e-mail us, or call directly at 888-433-0031. An independent insurance agency, we are licensed in Washington, Oregon, California, Nevada, and Arizona. We are dedicated to helping you find the insurance you need.
Be sure to visit our blog for more scam-spotting tips.
Erin Stork, Homer Smith Insurance