We’ve got the 411 on possible insurance scams and how your broker can help you avoid them.
Home Contractor Scam
After extreme weather, for example, a windstorm - unethical contractors have been known to go door to door to locations with damage and try to sell their services.
Not all of these contractors have your best interest in mind and they often exaggerate prices.
Your property insurance will only cover up to a certain amount of damage expenses, and after that, you personally, must cover the balance. When selecting a contractor, request proof of insurance and licenses, call references, and if you can go see previous projects. Discuss everything with your Insurance Broker, as they are a valuable resource and can provide you with recommendations, including reputable contractors.
In addition, it’s valuable to obtain bids from several contractors before signing with one and coordinate all of your repairs with your insurance company.
Car Repair Scam
Back to school car maintenance and safety are in full swing, which could lead to your mechanic taking advantage of you.
Not all mechanics follow the same ethical compass.
When deciding on where to get your car serviced, be sure to check with multiple shops to make sure you’re not being charged extra or better yet use a shop your Insurance Broker recommends.
You’re at the mall to purchase school supplies, you see a parking space available, but you also see someone else approaching the same parking space. The other driver kindly waves at you indicating for you to take the parking spot. As you drive into the spot, the other driver purposely begins to drive into the spot as well, intentionally causing an accident.
Some scam artists try to intentionally cause an accident to collect insurance money - they may fake an injury or exaggerate damage.
If you are in an accident, take all the other driver’s information, photos of the scene and licence plate. Provide your Insurance Broker with every detail as to what took place.