How To Avoid 3 Common Car Insurance Scams

Drivers shopping for car insurance quotes must be vigilant and alert to possible scams. Scammers can take advantage of your desire to save money by reducing the cost of their supposed car insurance policies. There are some common car insurance scams nowadays. Read on and be informed.

One of the most common car insurance scams is those that offer cheap car insurance quotes. Consumers tend to jump on the cheapest rate that they find and going for price over quality could be very detrimental. A few months after purchasing that “cheap” insurance, policyholders discover a supposed error and that the initial quote they were given was just an “introductory rate," and their premiums are actually much more expensive than the quote originally given.

With online technology, a scam difficult to completely annihilate would be that of fake car insurance companies. Car insurance shoppers see many internet ads offering great-sounding deals. Sales agents even present insurance cards so that their website looks legitimate. But when you visit the company, you discover that it doesn’t exist.

Another scam involves the car insurance company referring a car repairer. Car insurance companies often recommend repairmen to their policyholders who have gotten into vehicular accidents. The company may even claim that the insurance policy specifically states that the policyholders are obliged to employ the services of their repairmen. Policyholders then discover that the prices for repair are extremely inflated.

To avoid these car insurance scams, consumers must be careful shoppers. It pays to do a lot of comparison shopping. Only browse through the websites of reputable car insurance companies. Better yet, visit the car insurance department website of your state. As much as possible, pick those companies which have strong company names with solid reputations. There are websites you can check to determine a company’s ratings and financial stability.

When dealing with brokers, make sure they are legitimate. Look for their licenses and credentials. You should not be embarrassed to request such proof since it is your responsibility to do so. Do not deal with a broker or company you don’t have complete confidence in. Do not be swayed by the appeal of their presentations. Go over all car insurance quotes with care and dig deep to determine if there are any hidden fees for certain services that are included in the quote. Be wary of those repair shops that the insurance company will refer. It always helps to be a skeptic in order to arrive at the best decision when shopping for car insurance. Keep in mind, the lowest price does not necessarily mean the best price.

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