How to Avoid Buying Phony Auto Insurance

Don’t Fall Victim to Phony Auto Insurance

Around the country, hundreds of fraudulent and phony auto insurance companies have sprung up looking to trick a few honest customers into giving them their money. If you’re in the market for auto insurance, you’ve probably come across a few yourself. Their promises of extraordinarily low prices are what lure most people in, but rarely are these companies what they seem. With some knowledge about these auto insurance scams, you should have no trouble avoiding them. Here’s what to look out for:

Warning Signs and What to Look For

• When applying with one of the major insurance providers, make sure the company is using their exact name spelled correctly. Scammers often try tricking customers into thinking their applying with a legitimate company because they have very similar names, such as Geicko instead of Geico.
• Be suspicious of any company that claims they will accept all applicants no matter their driving history or past claims. While there may be actual car insurance providers that make offers similar to these, the phony companies like to make these claims as well to lure driver’s that were spurned elsewhere.
• If you find a great deal on car insurance online, make sure the website leads to a completely legitimate company. They should also be able to provide you an actual physical address, as well as a real phone number or some other way to contact them other than just e-mail.
• You should be a little wary of any company that advertises “special” prices that last for only a “limited time.” Fraudulent companies often use these keywords in hopes that people will be obligated to apply right away.
• Before applying with an insurance company, conduct some research on it. You should be able to find some financial ratings and customer reviews if they are a real insurance provider.
• Be aware that many scammers will actually send advertisements and auto insurance offers by e-mail, phone, and postal mail. Many unsolicited offers are from phony companies.

Additional Resources

• Four Charged in Insurance Swindle
• Insurance Fraud - Spotting Insurance Scams