With over a trillion dollars’ worth of premiums, it’s not surprising that the insurance industry is one of the biggest in the country. Unfortunately, that’s also the biggest reason why some people prefer to earn quick and easy cash through deceptive means, using the premise of financial security as bait to unsuspecting victims.
Being careful when selecting an insurance policy goes a long way to avoid getting scammed. While majority of insurance agents are honest with their business, you should still watch out for certain signs that you might be falling victim to insurance fraud. If you think you notice any of these signs, don’t hesitate to look for another insurance agent.
Bogus or Fake Insurance
A lot of insurance fraud cases involve unwary victims praying premium for what they think is a great insurance policy, only to find out later that they can’t file a claim because that policy doesn’t exist in the first place. Agents will usually try to drum up interest by making exaggerated claims about the reputation of their company even if you haven’t heard or read about them before. They will sometimes even present false documents and certificates to convince victims.
Premium Theft or Embezzlement
You can still fall victim to an insurance scam even if you purchase a legitimate insurance policy. In the case of premium theft, the agent will take the money paid for your insurance premium instead of transferring it towards your insurance policy. This usually shows if you pay attention to your payment history: if you’re records are showing that you’re not paying as much as you originally shelled out, there’s a good chance that most of your cash went to the agent.
Because insurance agents get a lot of their cash from commissions, you might come across an agent that badly wants to convince you to switch to whatever insurance policy they’re offering. The agent will try to persuade you that their new plan is an upgrade or much more cost-efficient in the long run. If you’re fine with your current coverage, there’s really no reason to ditch it and start from scratch.
Many victims are lured by the premise of an excellent insurance policy with relatively low premiums, only to find out that they’ll be paying way more than what they signed up for. The unexpected costs come in the form of hidden charges that the agent failed to mention when they signed up. People who fall for this scam usually fail to review their contracts before signing, but even those who read the fine print can still be deceived by misleading details.
While agents will always try to downplay the disadvantages of their insurance policies, there are others who take things too far by outright lying about those disadvantages. For example, frequent policy changes that entail higher premiums are marketed as part of their new health plans that offer better coverage, even if those changes are superficial or completely false in reality.
Everybody knows that a getting a good insurance policy is a good investment. Unfortunately, insurance scammers like to capitalize on this fact by luring people in with the promise of high returns. A common tactic used by scammers involves handing out promissory notes that claim they are committed to making sure you see significant returns in an abnormally short amount of time. The agent may also claim that the notes are backed by insurance to convince even skeptic would-be victims.
With so many ways to possibly scam people looking for a good insurance, you’re probably thinking that avoiding scammers is almost impossible. However, being careful on your part and seeking assistance from professional investigators should be more than enough to make sure your premiums stay in good hands.