5 Common Signs of Auto Insurance Scams

Car insurance scams are rising, and it’s us customers who are shouldering the cost. With a lot of insurance companies out there, it’s pretty hard to determine which ones are legit and which ones are scams. Here are five of the most common car insurance scams you need to beware of.

      1.   Extremely Low Price

It’s so easy to be lured by über low insurance fees, which is why many clients get scammed. If a company is offering you very low insurance fees that seem too good to be true, it might be a sign that they’re trying to scam you. You’re better off looking for another company.

      2.  Forced Rear- Ending

The riskiest auto insurance claim is the staged-rear ending, or also called “swoop and squat”. In this type of scam, the scammer will come to a stop in a congested traffic, causing the driver to bump into them from behind. Almost all the time, the blame goes to the rear driver- which then becomes the victim. How to avoid this scam? Keep distance with other cars, allowing ample time to stop quickly.

      3.  Screens customers as a liar

When your insurance provider automatically screens you as a liar, you’re better off shopping for other companies. Keep in mind that reputable companies have their own honest way to detect whether a claim or report is true or fabricated.

      4.  Über Cheap Repair

Beware of companies that repair your cars as cheaply as possible. Ideally, trusted auto insurance companies offer quality-assured repair services, and not cheap ones just for the sake of telling you that your auto has been restored. The golden rule is to check the fine print.

       5.  Abandon you in times you need them most

One of the most obvious signs of auto insurance scams is taking advantage of clients. If your insurance company ditches you in times when you most need them most, go away. These people do nothing but rob you with their deceptive promises.

The best way to avoid these auto insurance scams is to be vigilant as possible. Talk to your trusted Frisco insurance company for honest advice and service for your auto insurance needs.