Michigan motorists gear up for hike in car insurance read more
Ways To Avoid Cheap Car Insurance Scams
August 17th, 2010
No driver wants to overpay for car insurance, but sometimes, cheap car insurance is a bit too good to be true. Some insurance providers don't actually provide real coverage to protect their drivers in the event of an accident, and it's therefore very important to know the signs of an insurance scam. Insurance is only worthwhile if it's providing you with some sort of protection, so knowing your rights and how your policy operates is key when looking at any low cost car insurance quote.
One of the first things to do when you find a cheap car insurance provider is to check their contract for exclusions. Exclusions are policy terms that exclude your insurance provider from payout responsibility in certain circumstances. A reputable car insurance contract will have some exclusions, for example, an exclusion that prevents a payout if an accident was caused by improper car maintenance. An insurance scam company might put so many exclusions into a policy that a payout is almost impossible. Most states have laws set up to prevent these types of predatory contracts, but they still exist–if you notice a high number of exclusions or confusing, suspicious policy terms, contact the insurance company for an explanation. If they're unable to provide a satisfactory answer, don't buy insurance from them, and consider turning them in to your state's insurance commission. You should also look for hidden fees in your contract, which may also be illegal.
It's also a good idea to look online for customer satisfaction ratings for an insurance provider to avoid scams. Customer satisfaction ratings should give you a clear picture of how a company operates; insurance providers that receive dozens of complaints about the way that they do business probably aren't too dependable. When you look online for customer reviews, be sure to check third party websites and car insurance aggregate websites. This way, you'll avoid potentially biased information that's displayed directly on the insurance provider's web page.
Always look for several insurance quotes, and be careful when you find cheap car insurance that seems too good to be true. You can often cut down on your risks by purchasing insurance from major, well-known insurance providers, and by carefully reading your contract before signing up for a new policy. Remember, if you're involved in a car insurance scam, you can always contact your state's insurance commission for help. The best way to deal with an insurance scam, however, is to avoid it completely, and drivers who carefully research their policies will be able to spot the warning signs of a bad policy very easily.
