Avoiding Fake Auto Insurance Companies Author:    Posted under: Auto InsuranceAuto Insurance questions answered

You’re looking for auto insurance coverage and decide to check the internet. After all, almost anything and everything can be found online these days. Literally thousands of results jump out at you when you do a search for online car insurance quotes and it will make you wonder – are all these really legitimate insurance companies?

There’s a pretty big chance that there are others who are out there just to make a quick buck. Since legitimate car insurance companies have started to utilize the internet to broaden their reach and started offering free auto insurance quotes online, there has also been a proliferation of unscrupulous groups who have cast their nets in the hopes of catching an unsuspecting consumer.

Most of these fake auto insurance companies’ websites exist for the sole purpose of cheating someone of their hard-earned money. Still there are others that exist for data mining purposes – you put in all relevant information about you and they sell these to other groups. Sometimes, they may even generate a quote for you. But the danger in this is when a person falls for their trap, gets fake insurance documents, meets an accident and then find out that he or she is completely uninsured. The consequences may be financially devastating.

So what do you need to be aware of in order to avoid getting duped by these scammers?

Do your homework. While comparison shopping is the foremost reason why people search online for car insurance coverage quotes, do not be blinded by the fact that this one company’s rates are 50 percent cheaper than others. Find out how much other companies are charging for their premiums. The fact that this company is selling coverage for so cheap should raise a red flag. Even if they are legitimate, their coverage might not be comparable to others’.

Determine the company’s legitimacy. Your state’s insurance department has information on all licensed insurance companies in your area. Also read reviews from trusted reviews of auto insurance companies, such as JD Power and Associates or Consumer Reports. No news is not necessarily bad news, but you would do good to stay away from a company that gets no feedback or evaluation of services.

Website’s safety features. All legitimate auto insurance company websites should have a seal indicating the level of protection in place – this is to reassure their clients and potential customers that they keep any and all information you provide them safe and private. A fly-by-night company will not invest in security features and the lack of these should alert you that something fishy is going on. It’s either they are fake, or don’t value their customers’ privacy.

Read the policy carefully. Are there any irregularities with the policy? Does it indicate all the insurance products you requested such as separate components for each type of coverage?

Search for online reviews. There are no perfect insurance companies in existence. Even the biggest ones get bad press from people who’ve had bad experiences with them. It’s important to check for client testimonials aside from what’s available on the company’s website itself. Dig up as much information as you can on the company.

The responsibility of protecting yourself, your hard-earned income and those you meet on the road each day is yours especially since there is a wealth of information readily available at your fingertips. Most important of all is to never sign on with a company without thinking it through, just because they happen to have the cheapest rates on the planet.


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