Insurance fraud is a real thing! Insurance broker seller scams are becoming increasingly more popular, and that is why we have shared great tips on how to avoid these scams.
Fraud Prevention Month
March is Fraud Prevention Month, an annual campaign that brings awareness to fraud. We can combat insurance fraud together – by informing ourselves on what is happening.
By missing the cues of an insurance seller scam, you can run into many issues. Surprisingly, the most common issue is dealing with a ‘ghost insurance broker’ – an unauthorized insurance broker who is selling you insurance without a licence. This can lead to you wasting money, accidentally supporting criminal activity, resulting in you having no insurance coverage.
Sadly, insurance scam operations are becoming very common. Make sure you’re informed on how to avoid any fraudulent insurance scams.
We’ve outlined how to make sure you are dealing with a trusted insurance broker, to avoid any insurance fraud scams.
Three Ways to Spot & Avoid Insurance Scams
#1 Policies that Appear "Too Good to Be True"
If you have a slight suspicion that your insurance broker may be giving “too good of a deal,” it doesn’t hurt to do some extra research. If you are suspicious, get quotes from another insurance broker. Of course, not all “deals” are scams but be sure to investigate it further if you’re concerned.
Also, keep in mind that the lowest insurance premium doesn’t mean you’re getting the best coverage. You need to ensure you’re getting the coverage you NEED.
#2 Extra Charges and Fees
Never pay to get a quote on your insurance. If your insurance broker is trying to charge you a fee for this, it should be a major RED FLAG for you, as this is usually associated with insurance scams. They just want to get money and information from you as soon as possible.
Your insurance broker should be offering you a free insurance quote with no strings attached. There are ways to save on your insurance, however, those savings shouldn’t sacrifice coverage.
#3 Suspicious Payment Requests
If your insurance broker only gives you the option of paying cash or paying via electronic/wire transfer for your home or auto insurance policy – you probably have an issue on your hands.
Typically, you should have a variety of payment options outside of what is listed above. This is a huge red flag for a scam because no authorized insurance brokers will give you such limited payment options.